Authors: Ajay K. Aggarwal, Dinesh S. Dave
Addresses: Else School of Management, Millsaps College, Jackson, MS 39210, USA. ' Decision Sciences Department, John A. Walker College of Business, Appalachian State University, Boone, NC 28608, USA
Abstract: A previous study presented the use of EOQ and price breaks in ordering decisions in a JIT environment. In this paper, an attempt is made to develop a more generaliesd and practical approach in recommending purchase orders for manufactured or purchased parts in a JIT environment. Specifically, a model is presented that incorporates the cost impact of warehouse limitations and the possibility of defective/damaged goods, within an EOQ with quantity discount framework in a JIT environment. A systematic procedure is developed to recommend the optimal purchasing decisions considering the warehouse expansion and/or space allocation costs and the possibility of defective/damaged items. Based upon the model, a user-friendly, efficient, and effective BASIC program is developed to assist a manager|s purchasing decisions. In order to illustrate this approach, a set of numerical examples are presented in the paper.
Keywords: computer modelling; purchasing decisions; inventory decision making; just-in-time; JIT; optimal decisions; economic order quantity; EOQ.
International Journal of Computer Applications in Technology, 1995 Vol.8 No.3/4, pp.223 - 228
Published online: 05 Jun 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article