Design and Implementation of Economic Order Quantity (EOQ) to reduce costs of an Electrical Products Distributing company

Vasquez H.A.V.; Rojas K.C.A.; Díaz M.A.D. · Proceedings of the LACCEI international Multi-conference for Engineering, Education and Technology (2023) · DOI: 10.18687/leird2023.1.1.482

Resumen

This work was carried out with the aim of implementing engineering tools in a distributor of electrical products in the city of Lima, Peru. The development of the work had an initial diagnostic stage, where the stockout problem was identified. To solve this, two alternative solutions were proposed, which were evaluated based on realistic constraints, and the most suitable one was subsequently selected to address the identified company's problem. The selected tool was the Economic Order Quantity (EOQ), and then the results were compared with engineering standards to determine its impact. Finally, an annual cost reduction of $2, 948.93 was achieved, and at the same time, the impact of the implemented tool was evaluated, resulting in a TIR of 25.04%, a NPV of $1, 553.33, and a B/C of 2.42. This improvement proposal aims to generate a replicable study model supported by linear regression calculations.

Instituciones: Universidad Privada del Norte