A study of inventory optimization model for Eightdesign Sdn Bhd
This study is focusing in implementing inventory models in the management of Eightdesigns Sdn Bhd or also known as EDZ. EDZ has been operating since 2008 but yet has never practice the inventory models in their business and management. EDZ has to deal with problem in shortage and stock out of invent...
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| Format: | Undergraduates Project Papers |
| Language: | English |
| Published: |
2014
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| Online Access: | http://umpir.ump.edu.my/id/eprint/10708/ http://umpir.ump.edu.my/id/eprint/10708/ http://umpir.ump.edu.my/id/eprint/10708/1/FIST%20-%20aisyah%20wahab%204.pdf |
| Summary: | This study is focusing in implementing inventory models in the management of Eightdesigns Sdn Bhd or also known as EDZ. EDZ has been operating since 2008 but yet has never practice the inventory models in their business and management. EDZ has to deal with problem in shortage and stock out of inventory because of the ineffective ordering process where the quantity ordered could not meet and satisfy demand and sometimes EDZ also has to deal with surplus because of the error in ordering and finally results in high inventory cost. Therefore, Simple Moving Average Forecasting Method and Economic Order Quantity (EOQ) Model will be used in this study. The forecasting method will first be used to forecast the annual demand of each product, where the annual demand will then be used in the calculation of EOQ Model in identifying the optimal order quantity, reorder point, annual ordering cost, annual holding cost, expected number of order per year, expected number between order and total cost. However, the most important results in this study is to identify the optimal order quantity and reorder point of each product to help EDZ in planning their ordering |
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