The ability of small businesses to make and adjust to the paradigm shift needed to benefit from the Japanese production theory has been questioned in the literature. Zangwill (1992) questioned the limits of the Japanese Production Theory (JPT) and in a subsequent paper (Zangwill, 1994) held on to his argument about the limits of the Japanese Production Theory. In this paper, the Japanese Production Theory is first discussed, followed by a discussion of the consistency between the traditional EOQ theory and the Japanese production theory, critique of the Zangwill’s argument, and issues related to the relevance of the Japanese production theory to small businesses.
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