OPTIMIZING INVENTORY MANAGEMENT USING THE ECONOMIC ORDER QUANTITY (EOQ) MODEL FOR A ROOFING SHEET PRODUCTION COMPANY

The study optimizes inventory management in a roofing sheet production company using the Economic Order Quantity (EOQ) model to minimize costs and enhance operational efficiency, with a specific focus on 0.4mm Aluminium coil. In the Nigerian manufacturing sector, where rapid urbanization and construction demand drive material needs, inefficiencies in inventory practices,often result in tied-up capital, production delays, and reduced profitability. These challenges are increased by volatile raw material prices and supply chain disruptions common in developing economies like Nigeria. The primary problem addressed is the lack of a data-driven approach tobalance ordering costs (e.g., procurement and logistics fees) and holding costs (e.g., storage, insurance, and opportunity costs of capital), which undermines financial performance in an industry reliant on standardized products with relatively stable but seasonally influenced demand. The aim is to apply the EOQ model to determine optimal order quantities, evaluate cost savings compared to current practices, analyze improvements in inventory turnover, and assess the impact of key variables like demand, ordering costs, and holding costs. This contributes to sustainable operations in construction-driven markets by demonstrating EOQ as a practical tool for decision making. The findings affirm the EOQ model's effectiveness in manufacturing contexts with predictable demand, such as roofing sheets. By aligning procurement with economic principles, it supports cost efficiency, better cash flow, and competitiveness in Nigeria's construction sector, where Aluminium imports and local production face ongoing challenges. Limitations include the single product focus and exclusion of factors like quantity discounts or demand variability, suggesting avenues for future research integrating advanced EOQ variations. Overall, adopting EOQ can drive operational sustainability and profitability for similar industries.