Vol: 7, Issue: 2 2017

Page: 28-39

Significance of Materials Management in Industries Construction

M. Veera Krishna, D. Satyanarayana, Dr. K. Sambasiva Rao

As a result of LPG (Liberalization, Privatization and Globalization) the companies are searching for alternative ways to stay competitive. This study goes through the process of analyzing the company’s current forecasting model and recommending an inventory control model to help them solve their current issue. As a result, an Economic Order Quantity (EOQ) and a Reorder Point was recommended to help them reduce their product stock outs. The shortage of raw material for production always makes the process discontinuous and decreases the productivity. The ABC analysis technique for the inventory control system is first used to identify the most important multiple products and then the economic order quantity (EOQ) of each product is developed to find their inventory model equation individually.