Research on raw material inventory management of liquor production enterprises based on EOQ model

Author:

Zhang Rui,Hu Yunning

Abstract

With the recovery of the economy, China's liquor industry has shown strong recovery force, the scale of the liquor industry has been rising since 2018, but the output and sales volume have declined, and the competition in the liquor industry has become increasingly fierce, which has put forward higher operating requirements for various liquor companies. This paper analyzes the raw material (wheat) demand and inventory cost data of "Hengkang" liquor enterprises in the past three years, and uses the EOQ model to calculate its economic order quantity. Compared with the fixed order quantity method currently adopted by "Hengkang", it is found that the order quantity obtained by the EOQ model can reduce the inventory management cost of the enterprise. On this basis, some suggestions for inventory management of liquor enterprises are proposed.

Publisher

Darcy & Roy Press Co. Ltd.

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