Evaluating the Impact of Economic Order Quantity Strategy on Organizational Performance

Inuwa Magaji¹ , Suleiman K.² , M. Hassan³

Section:Research Paper, Product Type: Journal-Paper
Vol.11 , Issue.1 , pp.56-60, Feb-2024

Online published on Feb 28, 2024

Copyright © Inuwa Magaji, Suleiman K., M. Hassan . 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 :
The primary objective of this research is to assess the Inventory Control Analysis utilizing the Economic Order Quantity (EOQ) Method at Nina Plastic Ltd. The data collection process involved a preliminary survey, literature review, and field survey. Descriptive analysis was employed for data analysis. The study`s findings reveal that, based on EOQ calculations, the optimal quantity for purchasing 500ml bottles and kettles is 1,008,425 units. Notably, there is a cost saving of approximately N 217,409 per year for 500ml bottle raw materials (13.84% reduction) and around 5.88% for kettle making raw materials. The determined safety stock comprises 25,494 units of 500ml bottles and 531 units of kettles, necessitating 15 order placements per year. Additionally, the research identifies a maximum inventory of 107,429 bottles and 1,955 kettles, with reorder points set at 49,026 bottles and 1,021 kettles.

Key-Words / Index Term :
Inventory Control, Economic Order Quantity Method, descriptive analysis

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