Optimizing Economic Order Quantity (EOQ) Inventory models for calculating optimal order quantities and reorder points have been in existence long before the arrival of the computer. When the first Model T Fords were rolling off the assembly line, manufacturers were already reaping the financial benefits of inventory management by determining the most cost effective answers to the questions of When? and How much?. Yes long before JIT, TQM, TOC, and MRP, companies were using these same (then unnamed) concepts in managing their production and inventory. I recently read Purchasing and Storing, a textbook that was part of a Modern Business Course at the Alexander Hamilton Institute in New York. The textbook published in 1931 (thats right 1931) was essentially a how to book on inventory management in a manufacturing environment. If youre wondering why I would want to read a 70-year-old business text, my answer would be that the fundamental concepts of managing a business change very little with time, and reading about these concepts in a vintage text is a great way to reinforce the value of the fundamentals. The occasional reference to The War (referring to WWI) also keeps it interesting and the complete absence of acronyms is refreshing.
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