A Comprehensive Critical Analysis of the Economic Order Quantity Model inInventory Management
DOI:
https://doi.org/10.69996/ijari.2024002Keywords:
Economic Order Quantity, Cost Control, Cost Reduction, Ordering Cost, Handling Cost, Safety Stock, ManagementAbstract
This paper examines the pivotal role of inventory procurement in manufacturing and related ventures, emphasizing efficient control mechanisms. It focuses on the widely used Economic Order Quantity (EOQ) model, evaluating the consequences of deviating from optimal order quantities. The study extends to materials management, highlighting how effective inventory control reduces expenses related to employee and machinery idle time, emphasizing the urgency of material requirements. Recognizing the substantial impact of material costs on product expenses, the paper underscores the need for a well-designed inventory management system. Through detailed case study analysis, the research explores EOQ implementation nuances and its influence on total inventory costs, offering insights for refining strategies and enhancing operational efficiency.
References
[1] M.A. Razi & J.M. Tarn, "An applied model for improving inventory management in ERP systems," Logistics Information Management, 16(2),2003, 114–124.
[2] G.J. Bailey & M.M. Helms, "MRO inventory reduction—challenges and management: a case study of the Tennessee Valley Authority," Production Planning and Control, 18(3), 2007, 261–270.
[3] S.P. Sarmah & U.C. Moharana, "Multi-criteria classification of spare parts inventories–a web based approach,” Journal of Quality in Maintenance Engineering, 21(4), 2015, 456–477.
[4] S. Cavalieri, M. Garetti, M. Macchi & R. Pinto, "A decision-making framework for managing maintenance spare parts,” Production Planning & Control, 19(4), 2008, 379–396.
[5] Dr. Rakesh kumar, “Economic Order Quantity Model (EOQ),” Global Journal of Finance and Economic Management, 2016, 5(1), 2016, 1-5.
[6] K.-J. Chung, "A theorem on the determination of economic order quantity under conditions of permissible delay in payments," Computers & Operations Paper, 25(1),1998, 49–52.
[7] D. Y. L. C. Dinesh Kumar Dhoka1, " XYZ Inventory Classification & Challenges," IOSR Journal of Economics and Finance (IOSR-JEF), 2013.
[8] R.J. Tersine & M.G. Tersine, " Inventory reduction: preventive and corrective strategies," The International Journal of Logistics Management, 2010.
[9] A. H. C. Eaves & B. G. Kingsman, "Forecasting for the ordering and stock-holding of spare parts,” Journal of the Operational Paper Society, 55(4), 2004, 431–437.
[10] S.A. Giliyana & R. Kalaiarasan, "Maintenance Strategy according to the Professional Maintenance methodology as part of World Class Manufacturing," Mälardalen, University, Sweden, 2015.
[11] F.A. Remon, "Ranking of delay factors in construction projects after Egyptian revolution," Alexandria Engineering Journal, 52, 2013, 387–406.
[12] J.T. McClave, P.G. Benson & T.T. Sincich, "Statistics for Economics and Business," New York: Pearson, 2013.
[13] J.P. Minas, J.W. Hearne & J.W. Handmer, "A review of operations paper methods applicable to wildfire management," International Journal of Wildland Fire, 21(3), 2012, 189–196.
[14] J. Gu, G. Zhang & K.W. Li, "Efficient aircraft spare parts inventory management under demand uncertainty," Journal of Air Transport Management, 42, 2012, pp. 101-109.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 International Journal of Advance Research and Innovation(IJARI, 2347-3258)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Fringe Global Scientific Press publishes all the papers under a Creative Commons Attribution-Non-Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/) license. Authors have the liberty to replicate and distribute their work. Authors have the ability to use either the whole or a portion of their piece in compilations or other publications that include their own work. Please see the licensing terms for more information on reusing the work.
