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Under EOQ approach, order costs can be minimized by placing large infrequent orders of inventory. However, under JIT, inventory related costs are reduced by ordering
Under EOQ approach, order costs can be minimized by placing large infrequent orders of inventory. However, under JIT, inventory related costs are reduced by ordering frequently and in small quantity. Required: Explain the JIT inventory management philosophy and why both of these statements are CORRECT.
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