What does the "just-in-case" inventory strategy aim to achieve?

The "just-in-case" inventory strategy is designed to hold excess inventory as a buffer to mitigate potential uncertainties related to demand or supply. This strategy is particularly important for organizations that face variability in customer demand or potential disruptions in their supply chain. By maintaining a surplus stock, companies can ensure they have sufficient goods available to respond to sudden spikes in demand or delays in supply replenishment.

This approach contrasts with more lean inventory strategies, where the focus is typically on minimizing inventory levels to reduce costs and increase efficiency. While minimizing storage costs and enhancing real-time inventory tracking are valuable objectives, the primary goal of the "just-in-case" strategy is to provide a safety net against unpredictable market behaviors, ensuring that a business can maintain service levels even during unforeseen circumstances.