Unconstrained EOQ Analysis of a Furniture Mall - A Case Study of Bellwether Furniture

Manminder Singh Saluja¹

Section:Research Paper, Product Type: Isroset-Journal
Vol.2 , Issue.5 , pp.5-9, Sep-2014

Online published on Dec 02, 2014

Copyright © Manminder Singh Saluja . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
Indian economy had been growing fast over last 25 years leading to sharp rise in household incomes. The reality boom in the country had resulted in high demand for stylish furniture. Bellwether Furniture, a leading furniture mall of India has been actively fulfilling this demand. This had created a tough challenge of managing fast inventory flow. The paper had tried to find out the best inventory level for the mall for their product - TV units. The primary data on inventory of TV units was collected from the firm for financial year 2013-14. This was analyzed using unconstraint EOQ model for cost minimization. It was found that in unconstraint conditions Bellwether will need to invest total of Rs. 49, 08, 869.77 on its TV units with maximum investment of Rs. 6,65,195.98 for maintaining 89 units of model no 43XXX for minimizing its total cost on this product line of TV units.

Key-Words / Index Term :
EOQ, Inventory Management, Bellwether Furniture, Cost Minimization

References :
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