Scope and Method of Study: The purposes of this study are to indicate the important role of the inventory control element in Logistics Management, both in business and military, and to illustrate inventory costs (under fluctuating demand conditions) obtained from Basic E.O.Q., Wagner-Whitin, and Modified E.O.Q. Each method has been employed in deriving a purchasing plan which minimized the total inventory costs, under the fluctuating demand rate of a single item. A comparison of the results from each method is shown in order to aid the decision maker to select the best solution in this situation. A computer program for Basic E.O.Q. and Wagner-Whitin was developed.

Findings and Conclusions: Under fluctuating demand conditions, Basic E.O.Q. did not provide the optimal solution, especially when there is a substantial variation of demand rate in each time period. The Wagner-Whitin method is more acceptable and more satisfactory in achieving major savings (in replenishment and carrying costs). The Modified E.O.Q. provided significant cost savings in this situation when compared to Basic E.O.Q. model.