Abstract The Economic Order Quantity System (EOQ) has been promoted in the past as the most efficient mechanism for maintaining the most efficient level of material inventories. In recent years, two very similar techniques of inventory management have been developed. These techniques, Material Resource Planning (MRP) and Just-in-Time (JIT) take a much different approach to the inventory control situalion. MRP and JIT systems will help in the reduction of capital requirements for inventory while at the same time improving operating efficiency and control.