A comparison of just-in-time inventory and the quantity discount model in retail outlets

The inventory management system of a discount retail store was examined. A just-in-time inventory management model and a quantity discount model were used to determine the appropriateness of each model for the retail outlet. Based on the calculations performed, it was determined that utilizing a retail just-in-time (JIT) policy is unrealistic. Customer demands constantly change, and shortages due to stock-outs can cause huge losses in profits, especially when customers are lost to competitors. Additionally, the quantity discount model provides the lowest total cost for a retail outlet. Not only are the prices cheaper when inventory is bought in large quantities, but shortages or stock-outs are rare. The optimal solution for a retail store is implementing the quantity discount method.