Comparison of four different Inventory Models for Cost Reduction: Takoradi Technical University, Ghana in Perspective

In most organizations, both production and the service industry around the world and likewise Ghana, demand for stock items are mostly uncertain hence makes forecasting quite difficult. This poses a great challenge for officers in charge of stock management to make stock orders in the right quantities and at the right time. In this paper, a model for deciding the best ordering policy to reduce the total stock cost by focusing on the stock management strategies of Takoradi Technical University is presented by the authors. The study discusses a number of models which includes the lot for lot size, economic order quantity, periodic order quantity and the Wagner-Whitin algorithm. The findings reveal that, the overall annual inventory costs for a variety of stock calculated by each method shows that Wagner-Whitin algorithm is the best model for achieving optimum cost at the Takoradi Technical University.