Modeling Technique—A Tool for Inventory Control in Supply Chain

Within the scope of Supply Chain Management, the EOQ mathematical models were established to determine the optimum inventory level. Economy Order Quantity (EOQ) is considered as one of the finest model to quantify the inventory and ascertain the most extreme stock levels to be ordered at the least expense. An important aspect of inventory management is when and how much to order. A case study method has been adopted to analyze the inventory control and EOQ in an automobile company that manufactures four wheelers vehicles in India. The one of the material used by the automotive company is copper. In this paper two different types of copper materials (A1 & A2) have been considered for determining the Total Inventory Cost (TIC), Standard Deviation (SD), Safety Stock (SS), Economic Order Quantity (EOQ) and Re-Order Point (ROP). Present research covers two models one is presently used by the company and other is the proposed model. This research is conduct with aim to curtail the cost invested in inventory, as it has a direct effect on profit.