Analyzing the Impact of Economic Order Quality Model on Inventory Management

A Comparative Analysis of Inventory Management Techniques in a Haryana-based Company

Abstract

In today’s global market, companies are looking for growth and opportunities to reduce their total cost and management of companies would like to increase quality, efficiency and capability without increasing their investment. The success of many businesses is related to their ability to provide goods and services at right time and in right place. Different organization adopts different inventory control methods to manage their inventory to avoid stock-out and overstock. In this paper a case study of a company in Haryana is considered. For this study the EOQ (Economic Order Quantity) technique of inventory management is considered. In this company inventory management is not proper which causes overstock and sometimes stock-out. In this paper inventory management technique is considered and costs are calculated to compare two methods, one is used by this company and other is recommended model.