Command term: "Distinguish" = AO2—Demonstrate application and analysis
3 Steps to the answer
1)Define: What is JIT and JIC?
2)Apply: Apply to the case study: Has company X carried out JIC or JIT?
3)Analyse: Give 1 advantage and disadvantage in relation to company X
NB: Apply to Case Study!!!!
Sample answer:
JIC and JIT are two different stock management control methods. JIC is a control method which involves holding higher stock levels than demanded so that the company has enough production material on hand to meet unexpected rises in demand. JIT however, keeps stock levels at a minimum, and starts producing when there is a rise in demand. Company X is currently using JIT as they are a supermarket which sell perishable goods. This way they can ensure they will not make a loss in ordering more products than demanded.
Using JIT benefits them in that they can reduce storage costs by keeping a minimal inventory. Neverthless, a disadvantage is that they will not be able to be benefit from economies of scale through buying in bulk.