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1.5 Discussion
ОглавлениеWithout limitations the study is vast. The observation made a major contribution for organization technology and operations management to utilize the Inventory control technique attention on the possibility of optimising the company Inventory to manage method technique in an organization. Thereby creating awareness of the opportunity of optimising the company’s Inventory cost for better profitability. By so doing there is realistic signification of the EOQ.
This approach represents a variation from the tradition in EOQ model, where the inventory level change over time an average Inventory can be calculated on basis of physical space limitations which is related to tangible goods, thus requiring the definition of a reorder parameter. EOQ selection duties taking into account: i.e., delivery costs generally based on purchased rate that do not depend on the scale of the party ii. Prices for the maintenance of stocks are proportional to their size, which were before described as assumptions and boundaries in existing models. This model fulfils all necessities at least expense.