What characterizes "just-in-case" logistics?

• A. It involves keeping minimal stock levels.
• B. It emphasizes reducing waste in the supply chain.
• C. It maintains surplus stock for unexpected demand or disruptions.
• D. It focuses on just-in-time inventory practices.

Answer: (C)

"Just-in-case" logistics is characterized by maintaining surplus stock to prepare for unexpected demand or disruptions. This approach is rooted in a strategy that anticipates variability in demand, rather than simply responding to it. By having excess inventory on hand, companies can quickly adapt to unforeseen circumstances, such as spikes in customer orders or delays in supply chains, ensuring that they can meet customer needs without a disruption in service.

This strategy contrasts with other logistics models that prioritize efficiency over preparedness. For instance, minimal stock levels and just-in-time inventory strategies aim to reduce carrying costs and waste, relying on the premise that goods will arrive just when needed. However, these can leave businesses vulnerable in the face of unexpected events. By focusing on keeping surplus stock, "just-in-case" logistics provides a safety net, enabling organizations to sustain operations and customer satisfaction even when conditions shift unexpectedly.