Purchase Solution

philosophies underlying JIT and EOQ approaches to inventory

Not what you're looking for?

Ask Custom Question

Explain the differences in the basic philosophies underlying JIT and EOQ approaches to inventory management.

Purchase this Solution
Solution Summary

Your tutorial is 154 words and explains how JIT and EOQ optimize completely different things.

Solution Preview

Just in time says wait until you need the item before you buy it. So, the adopters of this method would not be concerned that ordering costs and ordering intervals would be optimal. They are more interested in being lean, not carrying ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Economic Order Quantity or Just-in-Time

    The resulting contribution of this model is that there is no need for a large storage area to store the inventory. JIT model is a better model compared to EOQ. JIT model has the capability to adjust to any production situation.

  • Economic Order Quantity: Minimizing Ordering and Inventory Costs

    JIT and EOC are compared and all calculations are shown.

  • Economic Order Quantity and JIT Compared

    If being out of stock is a serious problem, because it sends the customer to the competitor for example, EOQ would be a better strategy. If ingredients are easy to obtain and order costs are low, JIT is a great strategy.

  • Questions regarding economic order quantity

    276033 Questions regarding economic order quantity As the production manager, you need to minimize both ordering and inventory costs. You need to provide a recommendation of the optimal order quantity of raw materials to your plant manager.

  • ABC and JIT

    Discuss some of the ways that these two management philosophies are indeed complementary. ABC and JIT Let's assume that a manufacturing cell is implemented for a product.

  • High versus low inventory levels

    Accommodate for production and scheduling errors. Yet, JIT and Lean Manufacturing philosophies state that inventory is considered waste and should be eliminated as much as possible. 1.

  • Discussing Quality Management and Continuous Improvement

    If the actual quantity ordered is different than EOQ, it is an indication of inefficient inventory management.

  • Just In Time (JIT)

    If actual quantity ordered is different than EOQ is an indication of inefficient inventory mangement.

  • Cost Accounting Balanced Scorecards

    Jarvis has a traditional manufacturing and inventory system. Jarvis is considering the installation of a just-in-time inventory system to improve its cost structure.

View More Related Solutions