A note on just-in-time purchasing vs. economic order quantity with a price discount: An expansion of inventory costs

In a previous International Journal of Production Economics article, a comparative model was presented for inventory costs of purchasing under economic order quanity with quantity discounts and a just-in-time (JIT) order purchasing system. This paper expands the comparative model to include a relevant cost component not considered in the previous article. The results of the revised model show differences in the conclusions reached in the previous article, more specifically, the superiority of JIT in virtually any type of inventory ordering purchase decision.