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Economic Order Quantity and JIT Compared

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Compare and contrast Economic Order Quantity and Just-In-Time as inventory control methods. Evaluate how these control methods can improve the financial position of a small business.

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Solution Summary

Your 188 word tutorial contains two references and compares and contrasts the two methods and indicates when each is the best strategy for a small business.

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EOQ is a method to minimize holding costs and stock outs by ordering a quantity that is the best order size. The order size is designed to be enough to not run out but not so much that it runs up the cost of ordering or the cost of holding stock. This is typically a good system for finished goods that need to be in stock for customer ...

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Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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