The traditional stock management system that maintains large stock to cover emergencies or fluctuations is called?

• A. Lead time
• B. Reorder level
• C. Just-in-time (JIT)
• D. Just-in-case (JIC)

Answer: (D)

The idea being tested is keeping extra stock as a cushion to guard against uncertainty in demand or supply. Keeping large amounts of inventory to cover emergencies or fluctuations is Just-in-case. This approach prioritizes ensuring product availability even if demand spikes or deliveries are delayed, though it comes with higher carrying costs and space needs.

The other concepts describe different aspects: lead time is simply the delay between ordering and receiving goods, not a policy about how much inventory to hold. Reorder level is the point at which you place another order, a trigger mechanism, not the overall stocking approach. Just-in-time aims to minimize stock by aligning purchases and production with actual demand, reducing buffers, which is the opposite of maintaining large stock for emergencies.