Analysis of an economic order quantity and reorder point inventory control model for Siba group of companies in Utu Ikot Ekpenyong Ikot Ekpene, Akwa Ibom state-Nigeria
As a result of today’s uncertain economy, Companies are searching for alternative ways to stay competitive. SIBA group has been faced with an ineffective forecasting method that has led to multiple product stock outs. The issue faced has caused sales loss as well as profit loss,. This research goes through the process of analyzing the company’s current forecasting model and recommending an inventory control model to help her solve her current issue. As a result, an Economic Order Quantity (EOQ) and a Reorder Point was recommended along with two forecasting techniques to help her reduce her product stock outs. In addition, a cost estimate was done to compare both her current model and the recommended models. As a result, SIBA group, would be able to reduce her overall total cost from ₦1,005,335 to ₦181,155.8. This was a cost reduction of approximately 82 , which summed to a total saving of about ₦836,190 per quarter.