AQA · GCSE · Business

    Course version: 8132 · Version from Sept 2017

    The role of procurement: Just in case (JIC).

    Just in case (JIC) is a stock management approach where a business holds buffer stock to cover unexpected demand or supply delays.

    Checked against the AQA 8132 specification (opens in a new tab) on .

    • Point 4 of 21

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    Just in case (JIC) is a stock management approach where a business holds buffer stock to cover unexpected demand or supply delays. It is the opposite of just in time (JIT), which minimises stock. JIC helps avoid stockouts and production stoppages, but ties up working capital and incurs storage costs. For example, a bakery might keep extra flour in case a delivery is late. The method is assessed by explaining how holding stock protects operations and by weighing the costs of holding stock against the risks of not holding it.

    What earns the marks

    • Defines JIC as holding extra stock to cover unexpected demand or supply delays.
    • Explains that JIC reduces the risk of stockouts and production stoppages.
    • Identifies costs of JIC: storage, insurance, and tied-up working capital.
    • Contrasts JIC with JIT, which minimises stock and relies on reliable deliveries.
    • Applies JIC to procurement, e.g. buffer stock of raw materials or components.

    Common mistakes and how to put them right

    • Confusing JIC with JIT.

      Put it right: JIC holds buffer stock, JIT minimises stock.

    • Ignoring the costs of holding stock.

      Put it right: Balance benefits against storage and capital costs.

    • Assuming JIC is always best.

      Put it right: Evaluate when buffer stock is justified, e.g. volatile demand.

    Exam tips

    • Use a named business to show how JIC works in practice.
    • When evaluating, compare JIC with JIT in terms of cost and risk.
    • Link JIC to procurement decisions such as supplier reliability and reorder levels.

    Try the lesson

    The start of the The role of procurement: Just in case (JIC). lesson, made from checked teaching notes for this specification point.

    Have a go first

    Which statement describes the just in case (JIC) approach to holding stock?

    Listen

    Just in case (JIC) is a stock management approach where a business holds buffer stock to cover unexpected demand or supply delays. It is the opposite of just in time (JIT), which minimises stock. JIC helps avoid stockouts and production stoppages, but ties up working capital and incurs storage costs. For example, a bakery might keep extra flour in case a delivery is late. The method is assessed by explaining how holding stock protects operations and by weighing the costs of holding stock against the risks of not holding it. A strong answer earns marks for these points. Defines JIC as holding extra stock to cover unexpected demand or supply delays. Explains that JIC reduces the risk of stockouts and production stoppages. Identifies costs of JIC: storage, insurance, and tied-up working capital. Contrasts JIC with JIT, which minimises stock and relies on reliable deliveries. A common slip: Confusing JIC with JIT. Instead, JIC holds buffer stock, JIT minimises stock. Exam tip: Use a named business to show how JIC works in practice.

    See it

    A top-down flowchart starting from a node labelled Just in case (JIC). An arrow leads to a node labelled Holds buffer stock. From that node, arrows lead to four nodes: Covers unexpected demand, Covers supply delays, Ties up working capital, and Incurs storage costs. From Covers unexpected demand an arrow leads to Avoids stockouts, and from Covers supply delays an arrow leads to Avoids production stoppages. Separately, an arrow from Just in case (JIC) leads to a node labelled Opposite of just in time (JIT), which leads to a final node labelled JIT minimises stock.
    It shows just in case (JIC) holding buffer stock, the benefits of avoiding stockouts and production stoppages, the costs of tied-up working capital and storage, and its contrast with just in time (JIT).

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart starting from a node labelled Just in case (JIC). An arrow leads to a node labelled Holds buffer stock. From that node, arrows lead to four nodes: Covers unexpected demand, Covers supply delays, Ties up working capital, and Incurs storage costs. From Covers unexpected demand an arrow leads to Avoids stockouts, and from Covers supply delays an arrow leads to Avoids production stoppages. Separately, an arrow from Just in case (JIC) leads to a node labelled Opposite of just in time (JIT), which leads to a final node labelled JIT minimises stock.

    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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