Discrete Economic Order Quantity (EOQ) and Quantity Reorder Point Inventory Control: Implication on Resource Optimization in Nigerian Manufacturing Companies
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Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Innovative Science and Research Technology
Abstract
Purpose
The purpose of this study is to explore the implication of discrete Economic order Quantity (EOQ) and Recorder point on the optimization of resources in Nigeria manufacturing companies.
Design/Methodology Approach
A quantitative research design was employed of which secondary data obtained from the annual report and account of tern year period (2004-2013) from the studied firms were used. Data collected were estimated using Microsoft excel and exponential smoothing for each of the studied firms.
Findings
The economic order Quantity (EOQ) that is the quantity that minimizes total cost of raw material for each of the studied firms were determine discretely and by exponential smoothing. The results obtained, compared, we found that the result obtained by discrete EOQ were higher than the corresponding results obtained by exponential smoothing. The implication is that the discrete EOQ method over estimates resource optimization.
Conclusion
It is concluded that total cost of inventory is greatly reduced by the application of exponential smoothing method of EOQ and hence the essence of the method and the usefulness of this study.
Description
Staff Publication
Keywords
Inventory,, Economic Order Quantity,, Q/R Operating System,, Flour, Ordering Cost,, Carrying Cost