APPLICATION OF ABC AND EOQ MODELS TO ANALYZE INVENTORY MANAGEMENT PRACTICES FOR OPTIMAL ECONOMIC PERFORMANCEAPPLICATION OF ABC AND EOQ MODELS TO ANALYZE INVENTORY MANAGEMENT PRACTICES FOR OPTIMAL ECONOMIC PERFORMANCE

Abstract

Many firms' success is dependent on their ability to supply goods and services in the proper quantity, quality, and location. This study investigates TSU Bread & Confectionery inventory management procedures and their effects on economic performance. The study's goal is to figure out how important each inventory item is and what the EOQ is for those items. For this investigation, the ABC analysis and the EOQ approach were used.  Among other things, the study discovered that the TSU Bread & Confectionery economic order quantity for flour, sugar, and butter is 177, 56, and 54 bags per order, respectively, to reduce total cost. As a result, the study suggests that the company should keep a strong grip on the categories of flour, sugar, and butter as compared to control over the rest of the inventory.