● SIMULATION IDLE

>> JIT SIMULATION

JUST-IN-TIME vs TRADITIONAL STOCK CONTROL | EDEXCEL BUSINESS 2.4.3

TRADITIONAL SYSTEM
SUPPLY DISRUPTED
Supplier delayed. But high buffer stock allows continued production...
Raw Material
750
Work in Progress
600
Finished Goods
700
Total Inventory
2050 units
Storage Cost
£41,000
Production Status
100%
Waste
0%
Strategy: Large buffer stock holds 2-3 weeks of inventory. Protects against demand spikes and supply delays. High holding costs but operational security.
JIT SYSTEM
PRODUCTION HALTED
No buffer stock. Supplier delay cascades instantly. Production stops.
Raw Material
150
Work in Progress
80
Finished Goods
100
Total Inventory
330 units
Storage Cost
£6,600
Production Status
100%
Waste
0%
Strategy: Minimal inventory (1-2 days). Parts arrive exactly when needed. Low costs but vulnerable to ANY disruption.
KEY DIFFERENCES
Inventory Holding
2,000-3,000 units
2-3 weeks stock
Inventory Holding
200-400 units
1-2 days stock
Difference
-83% inventory
JIT advantage
Annual Storage Cost
£36,000-41,000
Facilities, insurance, spoilage
Annual Storage Cost
£4,000-6,600
Minimal warehousing
Savings
£30,000-35,000
Annual JIT advantage
Disruption Resilience
High
Buffer stock absorbs shocks
Disruption Resilience
Very Low
Stops immediately
Trade-off
Cost vs Security
Strategic choice
Traditional: Cost predictability, supply security
JIT: Efficiency, speed to market, zero waste
Risk: Supplier delays, quality issues