Analysis Of Economic Order Quantity (EOQ) & Lean Manufacturing Using Regression Method

Abstract

To determine the Economic Order Quantity (EOQ) of the two goods, ordering cost, average inventory, carrying cost, and total annual cost, regression analysis is utilized to establish correlations. The report claims that a comparative analysis demonstrated how using the EOQ/Regression model significantly decreased the two items' combined costs. When comparing the two products' costs using the company's present procedures to the regression model that was suggested, the former was more expensive. The savings varied by year, from roughly 2% to 10%.