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.
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