Economic order quantity (EOQ) versus just-in-time (JIT) purchasing: an alternative analysis in the ready-mixed concrete industry
AbstractThe literature on the use of just-in-time (JIT) and economic order quantity (EOQ) purchasing has increasingly favoured JIT in recent years, especially when firms are purchasing to meet high and consistent levels of demand, and the JIT operation can take advantage of inventory physical plant space reduction. The theoretical advantages of JIT purchasing may have been overstated. Two new concepts are developed to underpin the idea that, even if the JIT approach can induce inventory physical plant space reduction, it is possible for EOQ to be more cost effective, as the inventory demand approaches the break-even point between the function of the annual holding capacity of an inventory facility and the function of the EOQ-JIT cost indifference point. The survey and case study conducted in the ready-mixed concrete industry in Singapore support this proposition.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Construction Management and Economics.
Volume (Year): 23 (2005)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RCME20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fazel, Farzaneh & Fischer, Klaus P. & Gilbert, Erika W., 1998. "JIT purchasing vs. EOQ with a price discount: An analytical comparison of inventory costs," International Journal of Production Economics, Elsevier, vol. 54(1), pages 101-109, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.