A New EOQ Model for the Life Inventory of Tools

The traditional inventory model is on the assumption that the goods or materials in the inventory are lifeless. It is weak for the traditional theories of inventory to give a substantial description for the kinds of goods with some applicable lifecycle such as tools and molds. In this paper, tool inventory is taken as the discussed topic and a new tool life inventory model with some self-digesting engine is presented. Based on the performance analysis of the inventory, a new EOQ model is worked out. The data simulation of the model shows that it is better to describe the practical behavior of the tool life inventory. The cost of the inventory varies with its recovering ability and will be lower than that of the traditional inventory in some range. The traditional lifeless inventory model is just a special case of the economic life inventory model.