Accession Number : AD0612645

Title :   OPTIMAL FINISHED GOODS INVENTORY POLICY FOR A FIRM,

Corporate Author : CASE INST OF TECH CLEVELAND OHIO

Personal Author(s) : Goudreau,Kenneth

Report Date : 1965

Pagination or Media Count : 61

Abstract : A study is made of the production and inventory system of a small industrial firm. A mathematical model is developed to describe the relationship between average levels of finished goods inventory of each of fifty different products and corresponding levels of customer service. Customer service is measured by the percentage of orders that are back-ordered more than a specified length of time. The objective is minimization of total expected cost of carrying inventory for a specified level of customer service. The model includes the factors of limited production capacity, rate of production, variable demand, the cost of carrying inventory, and waiting time duration of backorders. The behavior of the inventory control system is simulated by means of a computer and conclusions are drawn on the basis of the results of that simulation. (Author)

Descriptors :   (*MANAGEMENT PLANNING AND CONTROL, INVENTORY), (*INVENTORY CONTROL, MATHEMATICAL MODELS), (*MANAGEMENT ENGINEERING, INVENTORY CONTROL), INVENTORY ANALYSIS, INDUSTRIAL PRODUCTION, COSTS, STORAGE, SIMULATION, COMPUTERS, OPERATIONS RESEARCH

Distribution Statement : APPROVED FOR PUBLIC RELEASE