ECONOMIC ORDER QUANTITY MODEL AND ITS UTILIZATION

We introduced the differences between Eastern and Western approach to inventory management in this article. The purpose of this study is the classical economic order quantity model (EOQ), its strengths, weaknesses and limitations. The studying of EOQ model is important because of the model still broadly utilized in contemporary information systems, despite fact that it is one of the oldest traditional invention scheduling models. The main idea of this model is the minimization the total inventory investment costs and ordering costs. We consider the deep understanding of EOQ type models is an ideal introduction to inventory management issues.