Application of Inventory Model in Determining Stock Control in an Organization

Abstract

This paper investigates the application of inventory model in determining stock control in an organization. A multi-product Economic Order Quantity model was used to determine the optimal order times. The result of the analysis revealed that J.O. Adimoha's investment does not have a proper inventory management which leads them to sometimes either over stock or under stock. The combination of orders at different time interval was carefully and constantly updated and verified because reorder points and EOQ may change. In conclusion, it was discovered that reorder points often coincides close together.