What do businesses using a Just in Case production methodology keep to insure against spikes in demand?

Businesses using a Just in Case (JIC) production methodology keep a surplus inventory to insure against spikes in demand. Here are the steps explaining this:

1. Understanding JIC: Just in Case (JIC) is a production strategy used by businesses to prevent against the unpredictability of the market. It is the opposite of Just in Time (JIT) production strategy.

2. The Strategy: In JIC, businesses produce and store large quantities of products in anticipation of a sudden increase in demand. This is done to ensure that they have enough stock to meet the demand and do not lose out on potential sales.

3. Surplus Inventory: To implement this strategy, businesses maintain a surplus inventory. This is the extra stock kept just in case there is a sudden spike in demand.

4. Insuring Against Spikes in Demand: By keeping a surplus inventory, businesses using JIC production methodology insure themselves against spikes in demand. If there is a sudden increase in demand, they can immediately meet it using the surplus inventory without any delay in production or delivery.

5. Risk Management: This strategy also helps in risk management. If there is a disruption in the supply chain, businesses can continue their operations using the surplus inventory until the issue is resolved.

In conclusion, businesses using a Just in Case production methodology keep a surplus inventory to insure against spikes in demand.