What describes a just-in-case (JIC) inventory approach?

A just-in-case (JIC) inventory approach refers to keeping excess inventory as a buffer to accommodate variability in demand. This strategy is typically adopted to mitigate the risks associated with stockouts and to ensure that there is enough inventory on hand to meet customer needs, regardless of fluctuations in demand or supply chain disruptions.

This approach contrasts with just-in-time (JIT) inventory systems, which aim to minimize inventory levels by receiving goods only as they are needed in the production process, thereby reducing holding costs. JIC is particularly beneficial in industries where demand is unpredictable or where lead times are long; this helps organizations maintain service levels and reduce the likelihood of losing sales due to insufficient inventory.

The other options, while relevant to inventory management, do not capture the essence of the JIC strategy. For instance, maintaining minimal inventory to reduce costs is more aligned with a JIT approach rather than JIC. Utilizing drop shipping methods and employing a JIT strategy also emphasize reducing inventory and streamlining supply chains, which contrasts with the premise of carrying extra stock in the JIC model.