Impact Factor (2025): 6.9
DOI Prefix: 10.47001/IRJIET
Effective
inventory management is crucial for optimizing resources and ensuring smooth
maintenance operations. This paper explores two primary replenishment
systems-Economic Order Quantity (EOQ) and Order Level Control-designed to
address the challenges posed by demand variability and lead-time uncertainty.
The EOQ model determines the optimal order size to minimize total inventory
costs, while replenishment systems guide the timing of orders. We analyze the
Fixed Order Quantity System (Q System), which maintains a constant order size
with variable ordering frequency, and the Fixed Order Interval System (P
System), which fixes the ordering intervals but varies the order size. Each
system's advantages and challenges are discussed, highlighting their
applicability based on demand stability, lead-time consistency, and inventory
value. Through a comparative analysis, this paper provides insights into
selecting the appropriate replenishment strategy to achieve efficient inventory
control, cost minimization, and resource optimization.
Country : India
IRJIET, Volume 8, Issue 6, June 2024 pp. 229-235