A Comparative Analysis Between Orthodox and Economic Order Quantity Model for Inventory Control of Tooling

Inventories consist of raw material, work-in-process and finished goods which are held by a business in ordinary course of business, either for sale or for the purpose of using them in the process of producing goods and services. Inventory management is a science primarily about specifying the shape and percentage of stocked goods. It is required at different locations within a facility or within many locations of a supply network to precede the regular and planned course of production and stock of materials. The problem being faced by my concerned industry was about mismanagement of tooling. The industry in the business of manufacturing cold forged nuts &bolts. The solution of this problem was obtained by implementing Economic Order Quantity Technique. In this model the complete data of tooling was maintained& sagrigated. Then the mathematicalmodeling was applied. Economic order quality is referred to that size of order which gives maximum economy in purchasing the materials. It is also known as optimum or standard order quality or EOQ offers solutions to inventory problems.. EOQ is the point of minimum cost at which the ordering cost will be just equal to the carrying cost such that neither excess material is ordered, nor too many orders are placed for the same material during a period in time.