The economic manufacture/order quantity (EMQ/EOQ) and the learning curve: Past, present, and future

Traditionally, inventory has been viewed as an asset, one that can be converted to cash. In recent years there has been a move towards the use of JIT production methods. The JIT view is that inventory does not add value but instead incurs costs, and thus is a waste. The JIT concept of continuous improvement applies primarily to a repetitive manufacturing process where the learning phenomenon is present. This paper surveys work that deals with the effect of learning on the lot-size problem. It also explores the possibility of incorporating some of the ideas adopted by JIT to such models.