Just-In-Time (JIT) inventory reduces the amount of raw material inventory, but may necessitate more frequent ordering than the EOQ formula.

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JIT inventory is focused on receiving materials only when they are needed, reducing the amount of raw materials in inventory. This may lead to more frequent ordering, but it is a tradeoff for reducing costs associated with carrying excess inventory. EOQ formula, on the other hand, calculates the optimal quantity to order to balance ordering costs and holding costs.

Just-In-Time (JIT) Inventory Reduces the Amount of Raw Material Inventory