(aka Materials Requirements Planning)
This strategy is based on expected usage and requires stock levels to be able to meet any level of demand. It prioritises preparedness and so is better able to meet sudden upticks in stock usage and unexpected delays in receiving stock from suppliers.
| Pros | Cons |
| - Easier to handle stock being on backorder from supplier | - Can be wasteful if demand for particular product declines |
| - Can easily meet increased demand | - Requires more space for storage of stock |
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Related: Just-In-Time Inventory Management, 01 Stock Tags: #inprogress References
- What Is Material Requirements Planning (MRP)?
- Just-in-Time vs Just-in-Case: Choosing the Right Strategy | NetSuite