The Logistics-Costs Analysis of JIT

  • Philip McCann
Part of the Advances in Spatial Science book series (ADVSPATIAL)


When the optimum delivery size and frequency is calculated for any particular input or output linkage, the total logistics costs of that particular linkage are at a minimum. Given all the various parameters, the traditional Western purchasing approach would suggest that there is no reason to diverge from this situation unless one of the parameters changes. However, the JIT approach argues that the size of Q should be reduced to the lowest value possible. The reason for this lies in the rationale behind the theory of JIT manufacturing, and centres on primarily on the issue of ‘quality costs’.


Economic Order Quantity Logistics Cost Quality Cost Input Inventory Supply Firm 
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  3. Koutsoyiannis A. (1982) Non-Price Decisions: The Firm in a Modern Context Macmillan, London.Google Scholar
  4. Love S. (1979) Inventory Control McGraw-Hill Inc., New York.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Philip McCann
    • 1
  1. 1.Department of Economics, Faculty of Urban and Regional StudiesUniversity of ReadingReadingEngland

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