Min, W and Pheng, L S (2005) EOQ with a price discount versus JIT purchasing: an alternative analysis in the ready-mixed concrete industry. Journal of Construction Research, 6(1), pp. 47-69. ISSN 1609-9451
Abstract
The successful implementation of just-in-time (JIT) purchasing policy in many industries has prompted many companies that still use the economic order quantity (EOQ) purchasing policy to ponder if they should switch to the JIT purchasing policy. This is, however, a difficult decision, especially when price discount has to be considered and despite existing studies that directly compare the costs between the EOQ and JIT purchasing systems. JIT purchasing may not always be successful even though plants that adopted JIT operations have experienced or can take advantage of physical space reduction. Hence, the objectives of this study are to expand on two new concepts that focus on, namely, the annual holding capacity of an inventory facility, and the break-even point between the annual holding capacity of an inventory facility and the EOQ-JIT cost indifference point. The objectives were tested and achieved through a survey and case study conducted in the ready-mixed concrete industry in Singapore.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | EOQ-JIT cost indifference point; price discount; annual holding capacity; inventory facility |
| Index terms: | implementation, case study, inventory, Singapore, concrete industry, purchasing, just-in-time, survey, economic order |
| Subjects: | contractual arrangements, lean logistics, Geography, inventory management, economic and policy analysis, data collection methods, procurement strategy, industry analysis |
| Topics: | Research Practice, Geographical Context, Procurement, Supply Chain Management |
| Descriptive scope: | 3 PCE |
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