Cost comparison of JIT and EMQ in production practice : using a new EMQ/JIT production-run model

摘要

from previous study of economic manufacturing quantity (EMQ)/just-in-time (JIT) production run model, some important cost components under the inventory management systems were ignored by the models. This paper builds new EMQ/JIT model considering out-stock cost, and figured out new EMQ/JIT cost indifference points, suggesting that JIT approach is not always prefered to EMQ approach in practice even when the JIT purchasing approach can capitalize on physical plant space reduction.