The “Plan for Every Food” in my household involves different policies for buying coffee beans and fresh raspberries. These simple examples show that thinking in terms of Economic Order Quantity (EOQ) isn’t always wrong, and Just-In-Time (JIT) isn’t always right. You need to set appropriate policies for screws, steel bars, engines, microchips, and all other items you may need, and review these policies periodically as circumstances change.
Feb 23 2015
EOQ Versus JIT Explained Through Coffee Beans and Raspberries
The “Plan for Every Food” in my household involves different policies for buying coffee beans and fresh raspberries. These simple examples show that thinking in terms of Economic Order Quantity (EOQ) isn’t always wrong, and Just-In-Time (JIT) isn’t always right. You need to set appropriate policies for screws, steel bars, engines, microchips, and all other items you may need, and review these policies periodically as circumstances change.
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By Michel Baudin • Policies • • Tags: Economic Order Quantity, EOQ, JIT, Just-in-time