The use of the EOQ model in inventory management in the supply chain on the example of Bahlsen Polska

Abstract

The article presents the theoretical basis of the EOQ (economic quantity order) model, which allows you to optimize the size of the order so as to minimize the cost of frozen capital. The next part presents the results of implementing the model at Bahlsen Polska, assuming that it does not receive any discounts from suppliers in relation to the size of the order. This assumption can be excluded in the case of the functioning of the disposition system, carried out taking into account large contracts with the supplier. Optimization in this situation does not apply to the quantity in the contract, but only to a single call, which is information for the supplier who must deliver a certain amount of goods and at the same time reduce the balance appearing in the contract.