A note on JIT purchasing vs. EOQ with a price discount: An expansion of inventory costs

In a previous International Journal of Production Economics article, a comp arative model was presented for inventory costs of purchasing under economi c order quantity (EOQ) with quantity discounts and a just-in-time (JIT) ord er purchasing system. This paper expands the comparative model to include a relevant cost component not considered in the previous article. The result s of the revised model show differences in the conclusions reached in the p revious article, more specifically, the superiority of JIT in virtually any type of inventory ordering purchase decision. (C) 2000 Elsevier Science B. V. All rights reserved.