Addressing key risks with a hybrid JIT/JIC inventory strategy: manufacturer scenario
The manufacturer may consider developing a hybrid JIT/JIC inventory strategy when the sum of all risks (think: brand name, competitive positioning, customer satisfaction / retention, et al.) associated with not meeting market demand (existing, pent-up, forecasted)… significantly outweighs the costs associated with holding the cushion inventory for raw materials / parts
This hybrid JIT/JIC inventory model could then be continually improved to aptly mitigate any unforeseen (JIT) inventory risks arising due to instability within their supplier and/or distribution networks as well as to optimally fulfill any sudden demand spikes across their product portfolio
