Discuss the Economic Order Quantity model (EOQ) and the Just-In-Time model (JIT), and identify the effectiveness of the two models.

Executive abstractIt is very important that prospering enterprises need efficient computer storage(a) operate commission. In reality, we usually use many an(prenominal) stock control puzzles such as the Economic hostel bill model (EOQ) and Just-In-Time model (JIT). Efficiency gains in inventory management fanny bring significant improvement to overall confederacy financial performance. In this report, rationale of the cardinal models, effectiveness of the two models in practice, and use JIT arranging in McDonald company allow for be presented.

Our conclusion that EOQ and JIT models like most management history techniques, are not a universal panacea and each company should choose own different stock control model with its own conditions and efficient inventory management can lead to better planning and business control.

Table of ContentspageExecutive Summary 1Table of Contents21.0 Introduction32.0 The EOQ Model and JIT Model42.1 Definition 42.1.1 EOQ Model 42.1.2 JIT Model43.0 The Basic Economic evidence Quantity Model43.1 Assumptions of EOQ Model 43.2 The objective of EOQ Model 53.3 Validity of the assumptions and model robustness 53.4 Fixed nine Point versus Fixed Order Interval Policy 64.0 Just-In-Time Production system64.1 JIT Logic 74.2 Features of JIT production system 74.3 JIT Costing 84.4 JIT Purchasing 95.0 The effectiveness of EOQ model in practice105.1 trial run of EOQ assumptions 105.2 EOQ Extension 116.0 The effectiveness of JIT model in practice 126.1 typic benefit of JIT 126.2 Potential problems in implementing JIT 136.



3 E-commerce and JIT purchasing 147.0JIT system in McDonald Company 148.0 Conclusion 18List of Reference 191.0 IntroductionIt is very important that successful enterprises need efficient stock control management, especially in manufacturing companies and retail distribution. In business practice, we usually use many stock control models such as the Economic Order Quantity model (EOQ) and Just-In-Time model (JIT). The purpose of this report is to prognosticate the rationale of EOQ and JIT models and detailed to explain the effectiveness...

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