EOQ calls for JIT order quantities when there is extreme reduction of the cost of ordering,extreme reduction of the cost of setting up jobs,and very low costs of carrying inventory.

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EOQ, or Economic Order Quantity, is a mathematical formula used to determine the optimal quantity of inventory to order to minimize the total cost of holding and ordering inventory. JIT, or Just-In-Time, is a lean production strategy that aims to produce and deliver products only when they are needed, in the exact quantity required, and with minimum waste. While the two concepts are related, EOQ does not necessarily call for JIT order quantities. In fact, EOQ assumes that there are costs associated with ordering, setup, and carrying inventory, and that the goal is to find the most cost-effective order quantity that balances these costs. JIT, on the other hand, is more concerned with minimizing waste and improving flow, and may call for smaller, more frequent orders, even if this increases the cost of ordering or setup.

EOQ Calls for JIT Order Quantities When There Is Extreme