While the economics underlying the EOQ support the JIT viewpoint that inventory should be purchased or produced in small quantities, thus keeping inventories to a minimum, their basic philosophies are quite different.

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The Economic Order Quantity (EOQ) model focuses on minimizing the total cost of inventory, including holding and ordering costs, which can align with Just-In-Time (JIT) principles of reducing inventory levels. However, EOQ is a mathematical model that determines the optimal order quantity, while JIT is a broader philosophy aiming at eliminating waste and improving efficiency, including but not limited to inventory management.

While the Economics Underlying the EOQ Support the JIT Viewpoint