A comparative analysis of inventory costs of JIT and EOQ purchasing

Farzaneh Fazel

52 citations0/0 files storedInternational Journal of Physical Distribution & Logistics Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Supply Chain and Inventory Management Management and Optimization Techniques Quality and Supply Management

Abstract

Presents a mathematical model to assist companies in their decision to switch from the economic order quantity (EOQ) to the just‐in‐time (JIT) purchasing policy. Determines an upper limit for the JIT purchase price of an item below which the manufacturer will be better off using JIT purchasing. Also determines the annual demand level at which the costs of EOQ and JIT purchasing will be equal (the indifference point). For demand levels above this indifference point EOQ is the less costly method while JIT is preferable for demand levels below this point. The model also predicts that JIT will be preferred for inventory items with higher purchase price, holding costs, or ordering cost.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 52 citations exist upstream.

References

1983Japanese Manufacturing Techniques: Nine Hidden Lessons in Simplicity 2011JUST-IN-TIME PURCHASING 1998Logistics in the health care industry 1992Economic manufacturing quantity in a just-in-time delivery system 1990Vendor Requirements and Evaluation in a Just‐In‐Time Environment 1998JIT purchasing vs. EOQ with a price discount: An analytical comparison of inventory costs 1991Supplier Performance Measures and Practices in JIT Companies in the U.S. and the U.K.

Cited by

2014Economic performance and supply chains: The impact of upstream firms׳ waste output on downstream firms׳ performance in Japan 2000JIT purchasing in the Spanish auto components industry – Implementation patterns and perceived benefits 2002Effect of the characteristics of the purchased products in JIT purchasing implementation 2001An alternative analysis of inventory costs of JIT and EOQ purchasing 2006Modeling just-in-time purchasing in the ready mixed concrete industry 2003A revised EMQ/JIT production-run model: An examination of inventory and production costs

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.