Inventory Management – Gilbert Paper Company 1
Inventory Management Strategy – Gilbert Paper Company
Niagara College Of Applied Arts & Technology
Business Admin. Operations & Supply Chain
Applied Management
Gilbert Paper Company 2
Overview
The purpose of this report is to develop an economic order quantity (EOQ) model
for inventory management to determine the optimum order quantity for Gilbert Paper
Company (GPC) by calculating the number of units GPC should add to its inventory with
each batch order to reduce the total holding and setup costs. This will allow the correct
amount of inventory to be ordered per batch so GPC does not have to make orders too
frequently nor have an excess amount of inventory sitting on hand – and lastly, not
interrupt overall workflow thus decreasing productivity.
To begin, we’ll determine the following input values:
Demand Rate (D)
Set-up/Ordering Cost (S)
