Journal of Computations & Modelling

Inventory Management: An Application to MAUTECH Health Centre

  • Pdf Icon [ Download ]
  • Times downloaded: 9131
  • Abstract

    The importance of inventory management cannot be overemphasized in organizations. The aim of this work is to determine the optimum inventory policies for drug storage limitation at University Health Centre Stores and to determine the Economic Order Quantity (EOQ) that will minimize the total cost of drugs and total space requirement for each drug in University Health Centre Stores. This paper demonstrates the usefulness of inventory control to help balance the merits of having inventory control and the cost of carrying them so as determine the optimum order quantity and to minimize the total cost. From the analysis, the University Health Centre Stores should order 1.548485 carton of ACT Forte tablet when ? equal to 1, order 1.5430577 when ? equal to 10, order 1.49174896 when ? equal to 100, order 1.31307923 when ? equal to 500 , order 1.15993036 when ? equal to 1000 , order 0.78449235 when ? equal to 3700. And continuously using the optimal EOQ for the remaining set of drugs and assuming values of the Lagrange multiplier with the aim to minimize the total average variable cost of unit drugs.

    Keywords: Economic Order Quantity, Health Centre, Inventory, Langrange Multiplier, Multi-item