The Role of Hybrid Make-to-Stock (MTS) - Make-to-Order (MTO) and Economic Order Quantity (EOQ) Inventory Control Models in Food and Beverage Processing Industry

Abstract

The inventory model had been utilized since the early 1900s. The implementation of the inventory management model is generally to ensure that an organisation is able to fulfil customer's demand at the lowest possible cost to improve profitability. This paper focuses on reviewing previous published papers regarding inventory control model mainly in the food and beverage processing industry. The author discusses four inventory models, which are the make-to-stock (MTS), make-to-order (MTO), economic order quantity (EOQ), and hybrid of MTS-MTO models. The issues raised by the researchers on the above techniques as well as the elements need to be considered upon selection have been discussed in this paper. The main objective of the study is to highlight the important role played by these inventory control models in the food and beverage processing industry.