Inventory Optimization in Multinational Firms Using the Economic Order Quantity Technique

Abstract

Effective inventory control is often the hidden engine that drives profitability for multinational companies that manage intricate global supply chains. This paper examines the Economic Order Quantity (EOQ) formula not merely as a textbook concept, but as a pragmatic framework for streamlining stock levels in dispersed markets. Using a detailed review of existing research along with a custom EOQ-centered model, we show how the tool cuts carrying and ordering expenses, boosts turnover rates, and quickens the entire chain’s response to demand shifts. Validation draws on proprietary data from several multinationals, revealing clear cost reductions and efficiency gains after the model was put into practice. Findings reinforce EOQs ability to harmonize inventory procedures across varied locales and point to the urgent need for data-powered approaches if international firms wish to control stock sustainably.