When comparing EOQ and JIT inventory systems,which of the following statements is false?
A)The EOQ approach takes the viewpoint that some inventory is necessary.
B)The EOQ system assumes a constant order quantity.
C)JIT argues that inventory investments should be minimized.
D)The EOQ system focuses on acquisition and holding costs.
E)JIT argues that safety stocks are necessary to reduce the probability of a stock shortagE.

Question

Quizplus · Accepted Answer

The statement that safety stocks are necessary to reduce the probability of a stock shortage is false when comparing EOQ and JIT inventory systems. JIT strives to eliminate the need for safety stock by ensuring a continuous flow of inventory through a lean, efficient supply chain process. EOQ, on the other hand, does recognize the need for safety stock as a buffer against unexpected demand or supply chain disruptions.

When Comparing EOQ and JIT Inventory Systems,which of the Following