Inventory Management:

In today's global scenario, companies are looking for growth and opportunities to reduce their total cost and senior management of companies would like to increase quality, efficiency and capability without increasing their capital investment. The success of many businesses is related to their ability to provide goods and services at right time and in right place. Different organization adopt different inventory technique to manage their inventory level to avoid overstock and stock-out. In this paper a case study of a company in Vasai (E.), Maharashtra is considered for a product called as "Lug". For this study the EOQ (Economic Order Quantity) and ROP (Reorder Point) technique of inventory management is considered. Currently in this company inventory management is ineffective and inadequate which causes overstock and sometimes stock-out. In this paper cost estimate is calculated to compare two methods, one is used by this company and other is recommended model.