BUS307 Week 4 – Discussion Forum 2


BUS 307 Week 4 – Discussion Forum 2

JIT/EOQ/ROP Interrelationships [WLOs: 1, 2] [CLOs: 1, 2, 3, 4, 5]

Prior to beginning work on this discussion forum, read Chapter 11: Managing Inventory Throughout the Supply Chain.

From the end of Chapter 11, answer Discussion Question 6: The just-in-time (JIT) movement has long argued that firms should

  • Maximize their process flexibility so that ordering costs are minimal.
  • Stabilize demand levels.
  • Shrink lead times as much as possible.
  • Assign much higher holding costs to inventory than has traditionally been the case.

Using the economic order quantity (EOQ) and reorder point (ROP) formulas, explain how such efforts would be consistent with JIT’s push for lower inventory levels.

Guided Response: Review several of your classmates’ posts and respond to at least two of your peers. You are encouraged to post your required replies early during the week to promote more meaningful and interactive discourse in this discussion. BUS 307 Week 4 – Discussion Forum 2



Hello Class,

The just-in-time (JIT) movement eliminates all waste aspects while continuously improving production (Bozarth and Handfield, 2019). JIT is a technique that forces creative thinking during all aspects of the enterprise. By reducing anything that doesn’t add value, a firm creates an operational environment that reduces cost exponentially and streamlines revenue.