BUS 307 Week 4 DQ 2 IT EOQ ROP
Interrelationships
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BUS 307 Week 4 DQ 2 IT/EOQ/ROP Interrelationships
JIT/EOQ/ROP Interrelationships. From the end of Chapter 14, answer Discussion
Question 6: The just-in-time (JIT) movement has long argued that firms should
a. Maximize their process flexibility so that ordering costs are minimal;
b. Stabilize demand levels;
c. Shrink lead times as much as possible; and
d. Assign much higher holding costs to inventory than has traditionally been the
case.
Using the economic order quantity (EOQ) and reorder point (ROP) formulas,
explain how such efforts would be consistent with JIT’s push for lower inventory
levels. Respond to at least two of your classmates’ postings