Title :
Using Matlab to Compute the Break-even Point in Supply Chain Management
Author_Institution :
Chongqing Jiao Tong Univ., Chongqing
Abstract :
Materials can be purchased either in economic order quantity (EOQ) fashion or Just-in-time (JIT) fashion. When all the companies purchase their materials in JIT fashion from its up-stream material suppliers, a supply chain is formed. Many companies that still use the economic order quantity (EOQ) purchasing system are meditating whether they should switch to the just-in-time (JIT) purchasing policy. The decision is difficult, particularly when price discount and complicated calculation are involved. The objective of this paper is to compute the EOQ-JIT cost indifference point by deploying Matlab. A case study from the ready-mixed concrete industry in Singapore is provided.
Keywords :
cement industry; just-in-time; mathematics computing; purchasing; supply chain management; EOQ purchasing system; JIT purchasing policy; Singapore; break-even point; economic order quantity; just-in-time; price discount; ready-mixed concrete industry; supply chain management; up-stream material suppliers; Cement industry; Concrete; Cost function; Mathematical model; Personnel; Raw materials; Remuneration; Supply chain management; Supply chains; Switches; Discount; Matlab; Supply chain; break-even point;
Conference_Titel :
Service Systems and Service Management, 2007 International Conference on
Conference_Location :
Chengdu
Print_ISBN :
1-4244-0885-7
Electronic_ISBN :
1-4244-0885-7
DOI :
10.1109/ICSSSM.2007.4280257
