The determination of high cost and low cost spare parts by using the comparison between EOQ model and lot-for-lot inventory model: A case study of slow moving item

摘要

Basically, EOQ inventory model is well known approach using for arrangement of spare parts stocking policy. But EOQ model cannot be used for explanation about the separation between high and low cost material that is not available to be the reference boundary between high and low. Thus, the interesting of the separation between high and low cost spare part will be issued in order to fulfill this niche. Meaningfully, this is the study of finding the representative line which is used for classifying either high or low cost spare part. The aftermath of this result can be in accordingly applied to the inventory model until entirely reduced parts as zero inventories. Furthermore, the case study is emphasized and thought by based on slow moving item. And the extension of EOQ model will be applied in order to meet discrete demand.