Manoj Kumar Gupta

Abstract

Inventory problem involves finding the optimum level of inventory to avoid shortage or surplus situation. i. e. how much should be stocked and when should be ordered for stocking? Inventory management plays a very important role in any industry. Inventory not only influences the manufacturing activity but it also influences the cost of products. In most of the industries, the practices of managing the inventories are based on the personal skill of those person involving in this activities and different trends like consumption of raw material inside the factory, demand fluctuations of finished goods, prices of raw material rise or fall in future trends etc. In this paper a case of Textile Mill, was taken and an effort has been made for the comparative cost analysis of present inventory system as against the standard mathematical model of inventory management. The proposed inventory model reduced inventory cost drastically as compared to the existing system.

Keywords- Gradual Replacement model, EOQ, Inventory control model, Inventory cost, Visual Basic.