A Comprehensive Critical Analysis of the Economic Order Quantity Model inInventory Management

Abstract

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.