Revolutionizing Inventory Management: Cutting Costs with EOQ Method for Tobacco Stock
The goal of the study was to reduce total inventory costs by applying the Economic Order Quantity (EOQ) method in procuring tobacco raw materials for a cigarette company. The researchers used Winter's method forecasting to estimate tobacco needs for the next period and calculated the optimal supply quantity, reorder point, and safety stock. The findings showed that implementing the EOQ method resulted in lower total inventory costs for the company.