Which of the two inventory models is better and why: Economic Order Quantity or Just-in-Time?
Economic Order Quantity (EOQ) is an inventory model that gives input on the optimal number of orders per period and the optimal quantity per order. The result is lowered ordering costs and annual inventory costs. EOQ can only be used in situations where the demand for the product is constant. When demand for a product ...
The solution compares where Economic Order Quantity model is better than Just-in-Time model.