Optimizing Material Management in Manufacturing
A Process Inventory Study of 7Up Bottling Company
DOI:
https://doi.org/10.54117/ijet.v1i1.8Keywords:
Economic order Quality (EOQ) model, seven-up, manufacturing firms, material management, process inventory, variance AnalysisAbstract
This research analyzes the economics of material management in the Seven-Up (7Up) Bottling Company, Enugu, from 2018 to 2022, with the objective of designing an effective process inventory system. The study examines specific objectives related to product improvement and internal material management practices, offering practical recommendations for optimizing material usage. The Economic Order Quantity (EOQ) model was employed to analyze the collected data. The findings indicate that the company incurred a total production cost of ₦118.8 million while generating total sales revenue of ₦395.84 million. This suggests that the adoption of the EOQ model in production planning and material management contributes to operational efficiency and profitability. Based on these findings, the study recommends that optimizing the quality and timing of material orders is essential for maximizing profits in the manufacturing process.
