When uncertainty is high, some companies deliberately hold extras. Just-in-case is an inventory strategy that maintains buffer stock to protect against demand spikes, supply delays, or other disruptions.
The approach contrasts with lean, tightly synchronized models. Extra inventory raises holding cost and risk of obsolescence, yet it can preserve customer service when forecasts fail or suppliers stumble. Industries with long lead times or high stockout penalties often accept the trade-off.
Just-in-case positioning may focus on critical items only rather than the entire assortment. Periodic reviews prevent buffers from silently growing out of control. The strategy is a conscious choice about where to place risk in the supply chain.
- Strategy of holding buffer inventory against uncertainty
- Protects service when demand or supply varies
- Increases holding cost and obsolescence risk
- Often applied selectively to critical items
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