Package ‘inventorize’

October 13, 2022

Title Inventory Analytics, Pricing and Markdowns
Version 1.1.1
Description Simulate inventory policies with and without forecasting, facilitate inventory analysis cal-
culations such as stock levels and re-order points,pricing and promotions calculations.
The package includes calculations of inventory metrics, stock-
out calculations and ABC analysis calculations.
The package includes revenue management techniques such as Multi-
product optimization,logit and polynomial model optimization.
The functions are referenced from :
1-Harris, Ford W. (1913). ``How many parts to make at once''. Factory, The Magazine of Man-
agement. <isbn10: 135–136, 152>.
2- Nahmias, S. Production and Operations Analysis. McGraw-
Hill International Edition. <isbn: 0-07- 2231265-3. Chapter 4>.
3-Silver, E.A., Pyke, D.F., Peterson, R. Inventory Management and Production Plan-
ning and Scheduling. <isbn: 978-0471119470>.
4-Ballou, R.H. Business Logistics Management. <isbn: 978-0130661845>. Chapter 9.
5-MIT Micromasters Program.
6- Columbia University course for supply and demand analysis.
8- Price Elasticity of Demand MATH 104,Mark Mac Lean (with assis-
tance from Patrick Chan) 2011W
For further details or correspon-
dence :<[Link]/in/haythamomar>, <[Link]>.
Depends R (>= 3.4.0)
License GPL-3
RoxygenNote 7.1.2
Encoding UTF-8
Imports ggplot2, dplyr, magrittr, tidyr, plotly, plyr,
Suggests knitr, rmarkdown,
NeedsCompilation no
Author Haytham Omar [aut, cre]
Maintainer Haytham Omar <haytham@[Link]>
Repository CRAN
Date/Publication 2022-05-31 [Link] UTC

1
2 R topics documented:

R topics documented:
ABC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
abc_dynamic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
CriticalRatio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
CSOE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
[Link] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
elasticity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
eoq . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
eoqsenstivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
EPN_singleperiod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
EPP_singleperiod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
EUSnorm_singleperiod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Hibrid_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Hibrid_pois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
hybrid_policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
hybrid_policy_dynamic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
inventorize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
inventorymetricsCIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
inventorymetricsCSL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
inventorymetricsIFR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
linear_elasticity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Max_policy_dynamic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
MPN_singleperiod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
MPP_singleperiod . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Multi_Competing_optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
periodic_policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
periodic_policy_dynamic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Periodic_review_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Periodic_review_pois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
possible_markdowns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
productmix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
productmix_storelevel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
profit_max . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
profit_max_withfixedcost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
reorderpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
reorderpoint_leadtime_variability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
revenue_max . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
R_s_S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
R_s_S_dynamic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
safteystock_CIS_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
safteystock_CSL_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
safteystock_IFR_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
saftey_stock_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
sim_base_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
sim_base_pois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
sim_base_stock_policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
sim_minmax_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
ABC 3

sim_minmax_pois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
sim_min_max . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
sim_min_max_dynamic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
sim_min_Q . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
sim_min_Q_dynamic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
sim_min_Q_normal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
sim_min_Q_pois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
single_product_optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
[Link] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
TQpractical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
TRC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Index 74

ABC ABC

Description
Identyfing ABC category based on the pareto rule. Identyfing ABC category based on the pareto
rule.A category is up to 80

Usage
ABC(data, [Link] = TRUE, plot = FALSE)

Arguments
data, Data frame of tuo columns,first column is the item name, second column is the
item value/flow/demand.
[Link], logical and by default is TRUE
plot, default is FALSE,if true a plot is generated

Value
a dataframe that contains ABC categories with a bar plot of the count of items in each category.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
ABC([Link](SKU= seq(1:1000),demand=runif(1000,1,1000)))
4 abc_dynamic

abc_dynamic abc_dynamic

Description
Identyfing ABC category based on the pareto rule. the function can have flexibility in defining the
A,B thresholds. can be done on multiple splits for example countries or stores

Usage
abc_dynamic(
product,
key_to_split = F,
first_attribute,
second_attribute = F,
A = F,
B = F
)

Arguments
product, Vector that contains the product name .
key_to_split, logical and by default is False, otherwise a column that has a splitting dimension,
for example ; stores or cities
first_attribute
, attribute to do the ABC analysis on, for example sales quantity
second_attribute
, attribute to do the ABC analysis on .for example profit, the default is FALSE
A , changing the default threshold for A category which is 0.8, the default is
FALSE
B , changing the default threshold for B category which is 0.95, the default is
FALSE

Value
a dataframe that contains ABC categories.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"
CriticalRatio 5

Examples
abc_dynamic(c(1:1000), rep(seq(1:10),100), runif(1000,4,10000),rnorm(1000,100,20))

CriticalRatio Criticalratio

Description
Calculating critical ratio of a news vendor model under any [Link] critical ratio maxmizes
profit.

Usage
CriticalRatio(sellingprice, cost, salvage, penality, [Link] = TRUE)

Arguments
sellingprice numeric,selling price of the SKU
cost numeric,cost of the SKU
salvage numeric„salvage or discounted value if sold after season,if there is no salvage ,
zero is placed in the argument.
penality numeric, peanlity cost of not satisfying demand if any, if not, zero is placed in
the argument.
[Link] A logical indicating whether missing values should be removed

Value
the critical ratio.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
CriticalRatio(sellingprice=80,cost=60,salvage=45,penality=25,[Link]=TRUE)
6 CSOE

CSOE CSOE

Description

Cost per stockout event

Usage

CSOE(
quantity,
demand,
standerddeviation,
leadtimeinweeks,
cost,
costSoe,
holdingrate,
[Link] = TRUE
)

Arguments

quantity, numeric,quantity replinished every cycle.

demand numeric,annual Expected demand of the SKU .
standerddeviation
numeric, standard deviation of the SKU during season.
leadtimeinweeks
numeric,leadtime in weeks of order.
cost numeric,cost of item.
costSoe numeric, estimated cost per stockout event.
holdingrate numeric, holding rate per item per year,percentage.
[Link] removes na values if TRUE, TRUE by default

Details

Calculating K value that corresponds to the cost per stock out event, how much quantity should be
put in stock as a [Link] function solves for optimum K based on the stock out event. It should
be noted that the condition(output) should be bigger than 1. other wise set K as per management.

Value

a dataframe that contains calculations of K and the minimum quantity to be put in stock .
[Link] 7

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
CSOE(quantity=1000,demand=40000,standerddeviation=200,leadtimeinweeks=3,
cost=500,costSoe=30000,holdingrate=0.2,[Link]=TRUE)

[Link] [Link]

Description
claculating demand lead time,saftey stock when there is a leadtime variability.

Usage
[Link](expected_demand, sd_demand, expected_leadtime, sd_leadtime)

Arguments
expected_demand,
numeric,expected daily demand .
sd_demand numeric,standard deviation of daily demand .
expected_leadtime
numeric, expected leadtime in days.
sd_leadtime numeric,standard deviation of leadtime

Details
calculating leadtime with leadtime variablility as delivery time diffires to long distances and reli-
ability of mode of transport. thus demand leadtime and standard deviation during lead time takes
into consideration the lead time variability.

Value
a dataframe that contains calculations of the expected demand lead time and the expected saftey
stock during leadtime. It is noted that saftey stock here is more than normal due to leadtime vari-
ability.
8 elasticity

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
[Link](expected_demand=100,sd_demand=22,expected_leadtime=12,sd_leadtime=3)

elasticity elasticity

Description
calculating elasticity of price change.

Usage
elasticity(salesP1, salesP2, priceP1, priceP2)

Arguments
salesP1, integer, unit sales in period 1.
salesP2 integer unit sales in period 2.
priceP1 numeric, average price of sku in period 1.
priceP2 average price of sku in period 2.

Details
This function is helpful to determine the elasticity of a product with effect to price change, the
figure could be negative as the change is price is negative. it translates as for each unit percentage
decrease in price , this much is ecpected precentage of increase of sales. condition must be that
Price in period one was more than proce in period 2 and sales in period two was more than sales in
period 1.

Value
the elasticity ratio in unit sales, the -ve number represents the increase in sales for each decrease of
unit currency.
eoq 9

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: "<haytham@[Link]>"

Examples
elasticity(salesP1=50,salesP2=100,priceP1=6,priceP2=4)

eoq eoq

Description
economic order quantity.

Usage
eoq(annualdemand, orderingcost, purchasecost, holdingrate, [Link] = TRUE)

Arguments
annualdemand numeric,annual demand of the SKU.
orderingcost, numeric ordeing cost of the SKU
purchasecost ,numeric, purchase cost per item
holdingrate numeric holding rate per item per year.
[Link] A logical indicating whether missing values should be removed

Value
the eoq,cycle stock time in years and cycle stock time in weeks.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
eoq(annualdemand=5000,orderingcost=400,purchasecost=140,holdingrate=0.2,[Link]=TRUE)
10 eoqsenstivity

eoqsenstivity eoqsenstivity

Description

the rate of increase of total relevant cost compared to the EOQ.

Usage

eoqsenstivity(quantity, quantityoptimal, [Link] = TRUE)

Arguments

quantity numeric,quantity ordered every order cycle.

quantityoptimal
, numeric optimal quantity based on EOQ.
[Link] A logical indicating whether missing values should be removed

Value

the rate of increase of total relevant cost compared to the EOQ.

Note

this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples

eoqsenstivity(quantity=5400,quantityoptimal=6000,[Link]=TRUE)
EPN_singleperiod 11

EPN_singleperiod EPN_singleperiod

Description
calculating expected profit for a newsvendor model.

Usage
EPN_singleperiod(quantity, mean, standerddeviation, p, c, g, b, [Link] = TRUE)

Arguments
quantity, numeric,quantity replinished every cycle.
mean numeric,Expected demand of the SKU during season.
standerddeviation
numeric, standard deviation of the SKU during season.
p numeric,selling price of the SKU
c numeric,cost of the SKU
g numeric„salvage or discounted value if sold after season,if there is no salvage ,
zero is placed in the argument.
b numeric, peanlity cost of not satisfying demand if any, if not, zero is placed in
the argument.
[Link] A logical indicating whether missing values should be removed

Details
calculating expected profit for a newsvendor model. based on assumed normal distribution demand.

Value
a dataframe that contains calculations of the expected profit from a newsvendor model based on
normal distribution.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
EPN_singleperiod(quantity=40149,mean= 32000,standerddeviation= 11000,p=24,c=10.9,g=7,b=0,[Link]=TRUE)
12 EPP_singleperiod

EPP_singleperiod EPP_singleperiod

Description
Expected profit from a newsvendor model based on a poisson distribution.

Usage
EPP_singleperiod(quantity, lambda, p, c, g, b, [Link] = TRUE)

Arguments
quantity numeric,quantity to be ordered during season.
lambda numeric, mean of the demand based on poisson distribution.
p numeric,selling price of the SKU
c numeric,cost of the SKU
g numeric„salvage or discounted value if sold after season,if there is no salvage ,
zero is placed in the argument.
b numeric, peanlity cost of not satisfying demand if any, if not, zero is placed in
the argument.
[Link] A logical indicating whether missing values should be removed

Details
calculating expected profit for a newsvendor model. based on assumed poisson distribution demand.

Value
a dataframe that contains calculations of the expected profit from a newsvendor model based on
poisson distribution.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
EPP_singleperiod(quantity=40149,lambda= 32000,p=24,c=10.9,g=7,b=0,[Link]=TRUE)
EUSnorm_singleperiod 13

EUSnorm_singleperiod EUSnorm_singleperiod

Description

Calculating expected unit short based on an assumed normal distribution.

Usage

EUSnorm_singleperiod(quantity, demand, standerddeviation, [Link] = TRUE)

Arguments

quantity, numeric,quantity replinished every cycle.

demand numeric,annual Expected demand of the SKU .
standerddeviation
numeric, standard deviation of the SKU during season.
[Link] logical,TRUE

Details

Calculating expected unit short based on an assumed normal distribution for a newsvendor model.

Value

a dataframe that contains Expected unit short,k and g(k).

Note

this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples
EUSnorm_singleperiod(quantity=35000,demand=32000,standerddeviation=12000,[Link]=TRUE)
14 Hibrid_normal

Hibrid_normal Hibrid_normal

Description
Hibrid Policy normal distribution service level, .

Usage
Hibrid_normal(
demand,
mean,
sd,
leadtime,
service_level,
Review_period,
min = FALSE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time periods.
sd standard deviation in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Review_period the period where the ordering happens.
min min quantity for order up to level,if FALSE, then calculated automatically.
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level
to simulate and inventory system, orders are lost if inventory level is less than requested demand,
also ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated.
the order up to level is calculated based on the review period,lead time and normal distribution.
Inventory is replenished if inventory position is below min or it is time for review period.
Hibrid_pois 15

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples

Hibrid_normal(demand=rpois(80,6),mean=4,sd=0.2,leadtime=5,service_level=0.95,
Review_period =9,min=30,
shortage_cost= FALSE,inventory_cost=FALSE,ordering_cost=FALSE)

Hibrid_pois Hibrid_pois

Description
Hibrid Policy Poisson distribution service level, .

Usage
Hibrid_pois(
demand,
leadtime,
service_level,
lambda,
Review_period,
min = FALSE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
lambda rate of demand in N time periods.
Review_period the period where the ordering happens.
min min quantity for order up to level,if FALSE, then calculated automatically.
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.
16 hybrid_policy

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level
to simulate and inventory system, orders are lost if inventory level is less than requested demand,
also ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated.
the order up to level is calculated based on the review period,lead time and normal distribution.
Inventory is replenished if inventory position is below min or it is time for review period.

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples

Hibrid_pois(demand=rpois(80,6),lambda=4,leadtime=5,service_level=0.65,
Review_period =9,min=30,
shortage_cost= FALSE,inventory_cost=FALSE,ordering_cost=FALSE)

hybrid_policy Hybrid

Description
Simulating a Min Max periodic policy, diffirent from R,s,S because here order is made in case the
Inventory position reaches min or the ordering period comes . The Function takes a demand vector,
mean of demand ,sd,lead time and requested service level to simulate an inventory system, orders
are lost if inventory level is less than requested demand, also ordering is made at day t+1, metrics
like item fill rate and cycle service level are calculated. the min is calculated based on a normal
distribution or a poisson distribution, also min can be set manually. Max - inventory position is
ordered whenever inventory position reaches min or at the period of review

Usage
hybrid_policy(
demand,
mean = FALSE,
sd = FALSE,
leadtime,
service_level,
initial_inventory_level = FALSE,
min = FALSE,
Max = FALSE,
Min_to_max = 0.6,
hybrid_policy 17

Review_period,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
recalculate = FALSE,
recalculate_windows = FALSE,
plot = FALSE,
Backlogs = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time [Link] is FALSE and is automatically calcu-
lated. otherwise set manually.
sd standard deviation in N time [Link] is FALSE and is automatically cal-
culated. otherwise set manually.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
min integer,Default is False and min is calculated based on mean,demand and lead
time unless set manually
Max integer,Default is False and max is calculated as a ratio to min,otherwise set
manually.
Min_to_max numeric, the ratio of min to max calculation , default 0.6 but can be changed
manually
Review_period Integer, the number of periods where every order is allowed to be made.
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
recalculate Logical, if true the mean and sd is recalculated every period from first period to
t,default is FALSE .
recalculate_windows
integer, the min mean and sd windows to recalculate , for example if it is set to 4
mean and sd is calculated from t to t-4„default is FALSE, if TRUE, recalculate
has to be TRUE Also.
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders
18 hybrid_policy_dynamic

Value

a list of two date frames, the simulation and the metrics.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples
hybrid_policy(demand = rpois(90,8),leadtime = 6,Review_period = 10,service_level = 0.8)

hybrid_policy_dynamic hybrid_policy_dynamic

Description

Simulating a Min Max periodic policy, diffirent from R,s,S because here order is made in case the
Inventory position reaches min or the ordering period comes the Max is dynamically calculated
based on a forecast vector. .

Usage

hybrid_policy_dynamic(
demand,
forecast,
leadtime,
Review_period,
service_level,
initial_inventory_level = FALSE,
Min_to_max = 0.6,
min = FALSE,
one_step_forecast = TRUE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
error_metric = "mse",
smoothing_error = 0.2,
metric_windows = FALSE,
plot = FALSE,
Backlogs = FALSE
)
hybrid_policy_dynamic 19

Arguments

demand A vector of demand in N time periods.

forecast the forecast vector of equal n periods to demand.
leadtime lead time from order to arrival (order to delivery time)
Review_period Integer, the number of periods where every order is allowed to be made.
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
Min_to_max numeric, the ratio of min to max calculation , default 0.6 but can be changed
manually.
min integer,Default is False and min is calculated based on Min_to_max but can be
set manually.
one_step_forecast
logical, Default is true where demand lead time is calcluated as(forecast at pe-
riod t * leadtime) while if False, demand leadtime is calculated as (forecast of
period t to forecast of period t+leadtime-1)
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
error_metric metric is currently ’rmse’ and ’mae’, this calculates the error from period 1 to
period t unless metric_windows is set. this contributes to the calculation of
saftey stock. default is ’rmse’
smoothing_error
number between 0 and 1 to smooth the error as alpha x error[t] + (1-alpha)xerror
t-1, if metric_windows is used, smoothing error has to be FALSE
metric_windows integer, for exammple if it is set to 4 rmse for t is calculated from t-1 to t-
4,default is FALSE
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders

Details

The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate an inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution or a poisson distribution, also min can be set manually.
Max - inventory position is ordered whenever inventory position reaches min or at the period of
review
20 inventorymetricsCIS

Value

a list of two date frames, the simulation and the metrics. the metrics are (1) shortage cost, (2)
inventory cost which is the cost of one unit of inventory in one period,(3) which is the average
inventory level per period, (4) total orders made in the simulation, (5) ordering cost if any, (6)
total lost sales if any,(7) average ordering quantity across all orders,(8) ordering interval which is
the average time between each order,(9) item fill rate,(10) cycle service level, (11) average saftey
stock in each period,(12) the average sales in every order,(13) overall root mean square error, (14)
overall mean absolute error, (14) overall mean error,(15) overall mean absolute percentage error,(16)
the average flowttime which is the average time a unit spends on inventory and (17) the demand
classification.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples

hybrid_policy_dynamic(demand = rpois(90,9),forecast = rpois(90,9),service_level = 0.9,

leadtime = 10,Review_period = 10,min = 50)

inventorize inventorize: Inventory Analytics And Cost Calculations.

Description

inventory analytics,revenue management and cost calculations for SKUs.

Author(s)

Maintainer: Haytham Omar <haytham@[Link]>

inventorymetricsCIS inventorymetricsCIS

Description

calculating inventory metrics based on cost per item short.

inventorymetricsCIS 21

Usage

inventorymetricsCIS(
CIS,
demand,
standerddeviation,
quantity,
leadtime,
cost,
holdingrate,
[Link] = TRUE
)

Arguments

CIS numeric,cost per item short determined by management

demand numeric,annual demand of the SKU.
standerddeviation
numeric, annual standard deviation
quantity, numeric,quantity replinished every cycle.
leadtime, numeric,leadtime in weeks
cost, numeric cost of the SKU
holdingrate ,numeric, holding rate per item/year
[Link] A logical indicating whether missing values should be removed

Details

after cost per item short is explicitly calculated, item fill rate, cost per stock out event and cycle
service level are implicitly calculated.

Value

a dataframe that contains demand leadtime,sigmadl(standard deviation in leadtime),saftey factor k

determined based on cost per itemshort,unit normal loss function,expected units to be short,cycle
service level, fill rate,implied cost per stockout event, saftey stock and suggested reorder point.

Note

this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)

"haytham omar email: <haytham@[Link]>"

22 inventorymetricsCSL

Examples
inventorymetricsCIS(CIS= 90, demand= 35000,standerddeviation=9000,
quantity= 9000,leadtime=3 ,cost=90,holdingrate=0.15,[Link] =TRUE)

inventorymetricsCSL inventorymetricsCSL

Description
calculating inventory metrics based on CYCLE SERVICE LEVEL.

Usage
inventorymetricsCSL(
csl,
demand,
standerddeviation,
quantity,
leadtime,
cost,
holdingrate,
[Link] = TRUE
)

Arguments
csl numeric,required times of demand that is fullfilled from cycle stock
demand numeric,annual demand of the SKU.
standerddeviation
numeric, annual standard deviation
quantity, numeric,quantity replinished every cycle.
leadtime, numeric,leadtime in weeks
cost, numeric,cost of the SKU.
holdingrate numeric, holding rate per item per year.
[Link] A logical indicating whether missing values should be removed

Details
cycle service level is the desired no of times demand is compleltey fulfiiled from cycle stock,after
cycle service level is explicitly calculated, cost per item short, cost per stock out event and item fill
rate are implicitly calculated.

Value
a dataframe that contains demand leadtime, sigmadl(standard deviation in leadtime), saftey factor
k determined based on item fillrate provided, unit normal loss function, expected units to be short,
cycle service level, fill rate,implied cost per stockout event, saftey stock and suggested reorder point.
inventorymetricsIFR 23

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
inventorymetricsCSL(csl=0.95,demand=20000,standerddeviation=1200,
quantity=4500,leadtime=3,cost=100,holdingrate=0.15,[Link]=TRUE)

inventorymetricsIFR inventorymetricsIFR

Description
calculating inventory metrics based on item fillrate.

Usage
inventorymetricsIFR(
fillrate,
demand,
standerddeviation,
quantity,
leadtime,
cost,
holdingrate,
[Link] = TRUE
)

Arguments
fillrate numeric,required percentage of demand that is fullfilled from cycle stock
demand numeric,annual demand of the SKU.
standerddeviation
numeric, annual standard deviation
quantity, numeric,quantity replinished every cycle.
leadtime, numeric,leadtime in weeks
cost, numeric cost of the SKU
holdingrate ,numeric, holding rate per item/year
[Link] A logical indicating whether missing values should be removed
24 linear_elasticity

Details
item fill rate is the percentage of demand that is fullfilled directly from the cycle stock,after item fill
rate is explicitly calculated, cost per item short, cost per stock out event and cycle service level are
implicitly calculated.

Value
a dataframe that contains demand leadtime, sigmadl(standard deviation in leadtime), saftey factor k
determined based on item fillrate provided, unit normal loss function expected units to be short,cycle
service level, fill rate,implied cost per stockout event, saftey stock and suggested reorder point.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
inventorymetricsIFR(fillrate= 0.90, demand= 35000,standerddeviation=9000,
quantity= 5000,leadtime=3 ,cost=50,holdingrate=0.15,[Link]=TRUE)

linear_elasticity linear_elasticity

Description
calculating elasticity of a linear price response function This function is helpful to determine if
your product is elastic or not based on a linear price response function. if product demand is not
linear to price, try using the single product optimization function instead. The price elasticity of
demand which is often shortened to demand elasticity is defined to be the percentage change in
quantity demanded, q, divided by the percentage change in price, p. When Elasticity bigger 1, we
say the good is price [Link] this case, percentQ bigger percentP, and so, for a 1 percent change
in price, there is a greater than 1 percent change in quantity [Link] this case, management
should decrease price to have a higher revenue. When Elasticity smaller 1, we say the good is price
[Link] this case, percentQ smaller percentP, and so, for a 1 percent change in price, there is a
less than 1 percent change in quantity [Link] this case, management should increase price to
have a higher revenue. When Elasticity equal 1, we say the good is price unit [Link] this case,
percentQ equal percentP , and so, for a 1percent change in price, there is also an 1percent change
in quantity demanded. This is the optimal price which means it maximizes revenue.

Usage
linear_elasticity(prices, Sales, present_price, cost_of_product, plot = FALSE)
Max_policy_dynamic 25

Arguments
prices vector of prices.
Sales Vector of sales against each price .
present_price numeric, present price of the product .
cost_of_product
cost of the product, if the product/service has no cost ,then cost is set to zero.
plot Default is false,if true, a plot is generated

Value
the elasticity at the present price , the price for optimum revenue and thee price for optimum cost.

Note
this is the third version of the inventorize package, all the functions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: "<haytham@[Link]>"

Examples
linear_elasticity(prices=c(5,10,8,5,14),Sales= c(450,400,420,450,360),
present_price=15,cost_of_product=40)

Max_policy_dynamic Max_policy_dynamic

Description
Simulating a max policy or also called S policy, the Max is dynamically calculated based on a
forecast vector.

Usage
Max_policy_dynamic(
demand,
forecast,
leadtime,
service_level,
initial_inventory_level = FALSE,
one_step_forecast = TRUE,
shortage_cost = FALSE,
inventory_cost = FALSE,
26 Max_policy_dynamic

ordering_cost = FALSE,
distribution = "normal",
error_metric = "mse",
metric_windows = FALSE,
smoothing_error = 0.2,
plot = FALSE,
Backlogs = FALSE
)

Arguments
demand A vector of demand in N time periods.
forecast the forecast vector of equal n periods to demand.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
one_step_forecast
logical, Default is true where demand lead time is calcluated as(forecast at pe-
riod t * leadtime) while if False, demand leadtime is calculated as (forecast of
period t to forecast of period t+leadtime-1)
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
error_metric metric is currently ’rmse’ and ’mae’, this calculates the error from period 1 to
period t unless metric_windows is set. this contributes to the calculation of
saftey stock. default is ’rmse’
metric_windows integer, for exammple if it is set to 4 rmse for t is calculated from t-1 to t-
4,default is FALSE
smoothing_error
number between 0 and 1 to smooth the error as alpha x error[t] + (1-alpha) x
error t-1, if metric_windows is used, smoothing error has to be FALSE
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate an inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution or a poisson distribution, also min can be set manually.
and order is equal to max((Max[t]-inventory position [t-1])+ sales[t],0)
MPN_singleperiod 27

Value
a list of two date frames, the simulation and the metrics. the metrics are (1) shortage cost, (2)
inventory cost which is the cost of one unit of inventory in one period,(3) which is the average
inventory level per period, (4) total orders made in the simulation, (5) ordering cost if any, (6)
total lost sales if any,(7) average ordering quantity across all orders,(8) ordering interval which is
the average time between each order,(9) item fill rate,(10) cycle service level, (11) average saftey
stock in each period,(12) the average sales in every order,(13) overall root mean square error, (14)
overall mean absolute error, (14) overall mean error,(15) overall mean absolute percentage error,(16)
the average flowttime which is the average time a unit spends on inventory and (17) the demand
classification.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
Max_policy_dynamic(demand = rnorm(90,9,2),forecast = rpois(90,9) ,
service_level = 0.7,leadtime = 10)

MPN_singleperiod MPN_singleperiod

Description
calculating expected profit for a newsvendor model based on critical ratio.

Usage
MPN_singleperiod(mean, standerddeviation, p, c, g, b, [Link] = TRUE)

Arguments
mean numeric,Expected demand of the SKU during season.
standerddeviation
numeric, standard deviation of the SKU during season.
p numeric,selling price of the SKU
c numeric,cost of the SKU
g numeric„salvage or discounted value if sold after season,if there is no salvage ,
zero is placed in the argument.
b numeric, peanlity cost of not satisfying demand if any, if not, zero is placed in
the argument.
[Link] A logical indicating whether missing values should be removed
28 MPP_singleperiod

Details
calculating expected profit for a newsvendor model. based on assumed normal distribution demand.

Value
a dataframe that contains calculations of the maximum expected profit from a newsvendor model
based on normal distribution.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
MPN_singleperiod(mean= 32000,standerddeviation= 11000,p=24,c=10.9,g=7,b=0,[Link]=TRUE)

MPP_singleperiod MPP_singleperiod

Description
Maximum profit from a newsvendor model based on a poisson distribution.

Usage
MPP_singleperiod(lambda, p, c, g, b, [Link] = TRUE)

Arguments
lambda numeric, mean of the demand based on poisson distribution.
p numeric,selling price of the SKU
c numeric,cost of the SKU
g numeric„salvage or discounted value if sold after season,if there is no salvage ,
zero is placed in the argument.
b numeric, peanlity cost of not satisfying demand if any, if not, zero is placed in
the argument.
[Link] A logical indicating whether missing values should be removed
Multi_Competing_optimization 29

Details
calculating expected profit for a newsvendor model. based on assumed poisson distribution demand
based on the critical ration.

Value
a dataframe that contains calculations of the maximum expected profit from a newsvendor model
based on poisson distribution.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
MPP_singleperiod(lambda= 32000,p=24,
c=10.9,g=7,b=0,[Link]=TRUE)

Multi_Competing_optimization
Multi_Competing_optimization

Description
Calculating the optimum price based on consumer choice model for products that competes with
each other.

Usage
Multi_Competing_optimization(X, y, n_variables, initial_products_cost)

Arguments
X a data frame of product prices at every event.
y integer vector with choices of a customer at each event , for example if the
competing products are only three , the possible choices are NA,1,2,3. NA being
a consumer did not buy any thing at this event and he chose to walk away.
n_variables Number of products competing with each other.
initial_products_cost
a vector of current costs for each product,for example if we have three products
, it could be c(1.8,2.5,3.9).or if there is no costs , it would be c(0,0,0)
30 periodic_policy

Details
for multiple products that are offered , some of these products compete with each other. for example;
Beef, chicken and lamb. each of them provides a certain value to consumer and are offered with
different prices. this function calculates the intrinsic utility value -what is the perceived value
of this product to the consumer- for competing products and optimize thee price of each product
accordingly. please note that the more the products you put in the model, the more processing time
it will take due to complexity of optimization [Link] is recommended to maximum of 8 products
to your model.

Value
a data frame with the product names which are names of X,the intrinsic utility value,the current cost
and the optimized price for each product

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
Multi_Competing_optimization(X= [Link](Chedar_Cheese= runif(100,10,15),
Mozarella=runif(100,8,10),
Parmesan=runif(100,9,12)),y= [Link](rep(c(1,2,3,NA,2),20)),n_variables = 3,
initial_products_cost = c(8,6,7))

periodic_policy periodic_policy

Description
Simulating a periodic policy, different from R,s,S because here order is made at the ordering time
without a min(reordering quantity)

Usage
periodic_policy(
demand,
mean = FALSE,
sd = FALSE,
leadtime,
service_level,
initial_inventory_level = FALSE,
Max = FALSE,
Review_period,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
periodic_policy 31

distribution = "normal",
recalculate = FALSE,
recalculate_windows = FALSE,
plot = FALSE,
Backlogs = TRUE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time [Link] is FALSE and is automatically calcu-
lated. otherwise set manually.
sd standard deviation in N time [Link] is FALSE and is automatically cal-
culated. otherwise set manually.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
Max integer,Default is False and max is calculated as a ratio to min,otherwise set
manually.
Review_period Integer, the number of periods where every order is allowed to be made.
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
recalculate Logical, if true the mean and sd is recalculated every period from first period to
t,default is FALSE .
recalculate_windows
integer, the min mean and sd windows to recalculate , for example if it is set to 4
mean and sd is calculated from t to t-4„default is FALSE, if TRUE, recalculate
has to be TRUE Also.
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate an inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution or a poisson distribution, also min can be set manually.
Max - inventory position is ordered at the period of review

Value
a list of two date frames, the simulation and the metrics.
32 periodic_policy_dynamic

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
periodic_policy(demand = rpois(90,9),service_level = 0.9,
leadtime = 10,Review_period = 10,recalculate = TRUE,Backlogs=TRUE)

periodic_policy_dynamic
periodic_policy_dynamic

Description
Simulating a periodic policy, different from R,s,S because here order is made at the ordering time
without a min(reordering quantity) the Max is dynamically calculated based on a forecast vector. .

Usage
periodic_policy_dynamic(
demand,
forecast,
leadtime,
Review_period,
service_level,
initial_inventory_level = FALSE,
one_step_forecast = TRUE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
error_metric = "mse",
smoothing_error = 0.2,
metric_windows = FALSE,
plot = FALSE,
Backlogs = FALSE
)

Arguments
demand A vector of demand in N time periods.
forecast the forecast vector of equal n periods to demand.
leadtime lead time from order to arrival (order to delivery time)
Review_period Integer, the number of periods where every order is allowed to be made.
service_level cycle service level requested
periodic_policy_dynamic 33

initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
one_step_forecast
logical, Default is true where demand lead time is calcluated as(forecast at pe-
riod t * leadtime) while if False, demand leadtime is calculated as (forecast of
period t to forecast of period t+leadtime-1)
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
error_metric metric is currently ’rmse’ and ’mae’, this calculates the error from period 1 to
period t unless metric_windows is set. this contributes to the calculation of
saftey stock. default is ’rmse’
smoothing_error
number between 0 and 1 to smooth the error as alpha x error[t] + (1-alpha) x
error t-1, if metric_windows is used, smoothing error has to be FALSE
metric_windows integer, for exammple if it is set to 4 rmse for t is calculated from t-1 to t-
4,default is FALSE
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders

Details
The Function takes a demand vector, forecast vector and requested service level to simulate an
inventory system, orders are lost if inventory level is less than requested demand, also ordering
is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min is
calculated based on a normal distribution or a poisson distribution, also min can be set manually.
Max - inventory position is ordered at the period of review

Value
a list of two date frames, the simulation and the metrics. the metrics are (1) shortage cost, (2)
inventory cost which is the cost of one unit of inventory in one period,(3) which is the average
inventory level per period, (4) total orders made in the simulation, (5) ordering cost if any, (6)
total lost sales if any,(7) average ordering quantity across all orders,(8) ordering interval which is
the average time between each order,(9) item fill rate,(10) cycle service level, (11) average saftey
stock in each period,(12) the average sales in every order,(13) overall root mean square error, (14)
overall mean absolute error, (14) overall mean error,(15) overall mean absolute percentage error,(16)
the average flowttime which is the average time a unit spends on inventory and (17) the demand
classification.

Author(s)
"haytham omar email: <haytham@[Link]>"
34 Periodic_review_normal

Examples
periodic_policy_dynamic(demand = rpois(90,9),forecast = rpois(90,9),
service_level = 0.9,leadtime = 10,Review_period = 10)

Periodic_review_normal
Periodic_review_normal

Description
Simulating a Periodic order up to level policy, .

Usage
Periodic_review_normal(
demand,
mean,
sd,
leadtime,
service_level,
Review_period,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time periods.
sd standard deviation in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Review_period the period where the ordeering happens.
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the
order up to level is calculated based on the review period,lead time and normal distribution .
Periodic_review_pois 35

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
Periodic_review_normal(demand=rpois(80,6),mean=6,sd=0.2,leadtime=5,service_level=0.95,
Review_period =9,
shortage_cost= FALSE,inventory_cost=FALSE,ordering_cost=FALSE)

Periodic_review_pois Periodic_review_pois

Description
Simulating a Periodic order up to level policy, .

Usage
Periodic_review_pois(
demand,
lambda,
leadtime,
service_level,
Review_period,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
lambda rate of demand in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Review_period the period where the ordering happens.
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.
36 possible_markdowns

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the
order up to level is calculated based on the review period,lead time and Poisson distribution .

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
Periodic_review_pois(demand=rpois(80,6),lambda=6,leadtime=5,service_level=0.95,
Review_period =9,
shortage_cost= FALSE,inventory_cost=FALSE,ordering_cost=FALSE)

possible_markdowns possible_markdowns

Description
a markdown model This is a markdown model proposed in Walker, John. "A model for determining
price markdowns of seasonal merchandise." Journal of Product & Brand Management (1999), the
idea that it is possible for seasonal merchandise to forecast how much for a specific product can be
left at the end of the season. based on the sales rate in the periods of the selling season. for example,
if a seasonal shirt initial buying quantity is 500, during the the first two weeks we sold 100 and the
season for this shirt is 6 weeks, then it is possible to forecast for a one time shot product how much is
expected to be left with at the end of the season (at the end of the 6 weeks), the function applies the
algorithm in walker (1999), the returning value is a classification of the item if it is a slow moving
or a regular item. also the possible markdowns that can be applied. (only markdowns where there
is a economic viability) and this can be a dynamic markdown process where the process can be
repeated every week, preferably when the product changes its status from Regular to slow moving.
if the markdown recommendation is for example 0.9 then it means that the new price is 90

Usage
possible_markdowns(
begining_inventory,
weeks,
current_week,
inventory_at_week,
expected_at_season_end,
plot = TRUE
)
productmix 37

Arguments
begining_inventory,
inventory at the beginning of the season before selling.
weeks, number of weeks in the season.
current_week, the end of the current week.
inventory_at_week,
inventory at the end of the current week.
expected_at_season_end,
expected inventory left for salvage or writing off at the end of the season, if the
forecast is below it, then it becomes a regular item if the forecast is higher than
expected at season end then it becomes a slow moving item.
plot Default is false,if true, a plot is generated

Value
a dataframe that contains all tthe possible economically viable markdowns.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
possible_markdowns(begining_inventory=1000,weeks=16,
current_week=2,inventory_at_week=825,expected_at_season_end=150,plot=TRUE)

productmix productmix

Description
Identyfing ABC category based on the pareto rule for both demand and selling price,a mix of nine
categories are produced. Identyfing ABC category based on the pareto rule.A category is up to 80

Usage
productmix(SKUs, sales, revenue, [Link] = TRUE, plot = FALSE)

Arguments
SKUs, charachter, a vector of SKU names.
sales, vector, a vector of items sold per sku, should be the same number of rows as
SKU.
revenue price vector, a vector of total revenu per sku, should be the same number of rows
as SKU.
[Link] , logical and by default is TRUE
plot, default is FALSE,if true a plot is generated
38 productmix_storelevel

Value
a dataframe that contains ABC categories with a bar plot of the count of items in each category.

Note
this is the first version of the inventorize package, all the fucntions are common knowlege for supply
chain without any academic contribution from my side, the aim is to facilitate and ease much of the
bookkeeping that is endured during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
productmix(SKUs=c(1:100),sales=runif(100,1,1000),revenue = rnorm(100,200,10),[Link]=TRUE)

productmix_storelevel productmix_storelevel

Description
Identyfing ABC category based on the pareto rule for both demand and selling price,a mix of nine
categories are produced. Identyfing ABC category based on the pareto rule.A category is up to 80
in this fuction the data is splitted by store and a product mix is made on each store individually.

Usage
productmix_storelevel(
SKUs,
sales,
revenue,
storeofsku,
[Link] = TRUE,
plot = FALSE
)

Arguments
SKUs, charachter, a vector of SKU names.
sales, vector, a vector of items sold per sku, should be the same number of rows as
SKUs.
revenue, vector, a vector of total revenue per sku, should be the same number of rows as
SKUs.
storeofsku, vector, which store the SKU is sold [Link] be the same number of rows as
SKUs.
[Link], logical and by default is TRUE
plot, default is FALSE,if true a plot is generated
profit_max 39

Value
a dataframe that contains ABC categories by store with a bar plot of the count of items in each
category.

Note
this is the first version of the inventorize package, all the functions are common knowledge for
supply chain without any academic contribution from my side, the aim is to facilitate and ease
much of the bookkeeping that is endured during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
productmix_storelevel(c(1:1000),sales = runif(1000,4,10000),
revenue = rnorm(1000,100,20),storeofsku = rep(seq(1:10),100))

profit_max profit_max

Description
maxmizing profit based on chage in price and elasticity.

Usage
profit_max(cost, salesP1, salesP2, priceP1, priceP2, [Link] = TRUE)

Arguments
cost, numeric, cost of the SKU.
salesP1, integer, unit sales in period 1.
salesP2 integer unit sales in period 2.
priceP1 numeric, average price of sku in period 1.
priceP2 average price of sku in period 2.
[Link] logical with a default of TRUE

Details
This function is helpful to determine the elasticity of a product with effect to price change, the figure
could be negative as the change is price is negative. it translates as for one currency unit change in
price, this much is ecpected in units in increase of sales. condition must be that Price in period one
was more than price in period 2 and sales in period two was more than sales in period 1. a proposed
price is given to period 3 which is future period to maxmize profit. it is advisable that elasticity to
be calibrated by testing it on several periods. this function does not take into account advertising
and campaigns,i.e external factors. yet it’s a good indicator of best pricing per SKU.
40 profit_max_withfixedcost

Value

the elasticity ratio in unit sales, the -ve number represents the increase in sales for each decrease of
unit currency.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples
profit_max(cost=2,salesP1=50,salesP2=100,priceP1=6,priceP2=4)

profit_max_withfixedcost
profit_max_withfixedcost

Description

maxmizing profit based on chage in price and elasticity taking into consideration fixed and variable
costs.

Usage

profit_max_withfixedcost(
fixed_cost,
variable_cost,
salesP1,
salesP2,
priceP1,
priceP2
)

Arguments

fixed_cost, numeric, fixed cost for ordering and handling the SKU.
variable_cost,
numeric, the cost of the SKU, changing by quantity.
salesP1, integer, unit sales in period 1.
salesP2 integer unit sales in period 2.
priceP1 numeric, average price of sku in period 1.
priceP2 average price of sku in period 2.
reorderpoint 41

Details
This function is helpful to determine the elasticity of a product with effect to price change, the figure
could be negative as the change is price is negative. it translates as for one currency unit change in
price, this much is ecpected in units in increase of sales. condition must be that Price in period one
was more than price in period 2 and sales in period two was more than sales in period 1. a proposed
price is given to period 3 which is future period to maxmize profit. it is advisable that elasticity to
be calibrated by testing it on several periods. this function does not take into account advertising
and campaigns,i.e external factors. yet it’s a good indicator of best pricing per SKU.

Value
the elasticity ratio in unit sales, the -ve number represents the increase in sales for each decrease of
unit currency.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
profit_max_withfixedcost(fixed_cost=200,variable_cost=20,salesP1=50,salesP2=100,priceP1=6,priceP2=4)

reorderpoint reorderpoint

Description
Calculating saftey stock based on the cycle service level.

Usage
reorderpoint(
dailydemand,
dailystandarddeviation,
leadtimein_days,
csl,
distribution = "normal"
)

Arguments
dailydemand numeric,daily Expected demand of the SKU .
dailystandarddeviation
numeric, standard deviation of daily demand of the SKU .
leadtimein_days
leadtime in days of order..
csl cycle service level requested
42 reorderpoint_leadtime_variability

distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’.

Details

Calculating re-order point based on demand variability without lead time variability in an assumed
normal distribution. cycle service level is provided to calculate saftey stock accordingly.

Value

a dataframe that contains demand lead time,sigmadl,safteyfactor and re_order point.

Note

this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples
reorderpoint(dailydemand=50,dailystandarddeviation=5,leadtimein_days=6,csl=0.90)

reorderpoint_leadtime_variability
reorderpoint_leadtime_variability

Description

Calculating saftey stock based on the cycle service level.

Usage

reorderpoint_leadtime_variability(
dailydemand,
dailystandarddeviation,
leadtimein_days,
sd_leadtime_days,
csl,
distribution = "nbinom"
)
revenue_max 43

Arguments
dailydemand numeric,daily Expected demand of the SKU .
dailystandarddeviation
numeric, standard deviation of daily demand of the SKU .
leadtimein_days
leadtime in days of order.
sd_leadtime_days
standard deviation of leadtime in days of order.
csl cycle service level requested
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’

Details
Calculating re-order point based on demand variability and lead time variability in an assumed
normal distribution. cycle service level is provided to calculate saftey stock accordingly.

Value
a dataframe that contains demand lead time,sigmadl,safteyfactor and re_order point.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
reorderpoint_leadtime_variability(dailydemand=50,dailystandarddeviation=5,
leadtimein_days=6,sd_leadtime_days=2,csl=0.90)

revenue_max revenue_max

Description
maxmizing revenue based on chage in price and elasticity.

Usage
revenue_max(salesP1, salesP2, priceP1, priceP2, [Link] = TRUE)
44 R_s_S

Arguments
salesP1, integer, unit sales in period 1.
salesP2 integer unit sales in period 2.
priceP1 numeric, average price of sku in period 1.
priceP2 average price of sku in period 2.
[Link] logical with a default of TRUE

Details
#’ This function is helpful to determine the elasticity of a product with effect to price change, the
figure could be negative as the change is price is negative. it translates as for each unit percentage
decrease in price , this much is ecpected precentage of increase of sales. condition must be that
Price in period one was more than proce in period 2 and sales in period two was more than sales in
period 1. a proposed optimum price is given to period 3 which is future period to maxmize revenue.

Value
the elasticity ratio in unit sales, the -ve number represents the increase in sales for each decrease of
unit currency.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
revenue_max(salesP1=50,salesP2=100,priceP1=6,priceP2=4)

R_s_S R_s_S

Description
Simulating a Min Max periodic policy or also called R,s,S policy,R represents the ordering/review
period. .

Usage
R_s_S(
demand,
mean = FALSE,
sd = FALSE,
leadtime,
service_level,
initial_inventory_level = FALSE,
min = FALSE,
R_s_S 45

Max = FALSE,
Min_to_max = 0.6,
Review_period,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
recalculate = FALSE,
recalculate_windows = FALSE,
plot = FALSE,
Backlogs = TRUE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time [Link] is FALSE and is automatically calcu-
lated. otherwise set manually.
sd standard deviation in N time [Link] is FALSE and is automatically cal-
culated. otherwise set manually.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
min integer,Default is False and min is calculated based on mean,demand and lead
time unless set manually
Max integer,Default is False and max is calculated as a ratio to min,otherwise set
manually.
Min_to_max numeric, the ratio of min to max calculation , default 0.6 but can be changed
manually
Review_period Integer, the number of periods where every order is allowed to be made.
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
recalculate Logical, if true the mean and sd is recalculated every period from first period to
t,default is FALSE .
recalculate_windows
integer, the min mean and sd windows to recalculate , for example if it is set to 4
mean and sd is calculated from t to t-4„default is FALSE, if TRUE, recalculate
has to be TRUE Also.
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders
46 R_s_S_dynamic

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate an inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution or a poisson distribution, also min can be set manually.
Max - inventory position is ordered whenever inventory position reaches min at the priod of review

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
R_s_S(demand = rpois(90,9),service_level = 0.97,leadtime = 10,
Review_period = 10,Backlogs=TRUE)

R_s_S_dynamic R_s_S_dynamic

Description
Simulating a Min Max periodic policy or also called R,s,S policy, R represents the ordering/review
period, the Max is dynamically calculated based on a forecast vector. .

Usage
R_s_S_dynamic(
demand,
forecast,
leadtime,
Review_period,
service_level,
initial_inventory_level = FALSE,
Min_to_max = 0.6,
min = FALSE,
one_step_forecast = TRUE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
error_metric = "mse",
metric_windows = FALSE,
smoothing_error = 0.2,
R_s_S_dynamic 47

plot = FALSE,
Backlogs = TRUE
)

Arguments
demand A vector of demand in N time periods.
forecast the forecast vector of equal n periods to demand.
leadtime lead time from order to arrival (order to delivery time)
Review_period Integer, the number of periods where every order is allowed to be made.
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
Min_to_max numeric, the ratio of min to max calculation , default 0.6 but can be changed
manually.
min integer,Default is False and min is calculated based on Min_to_max but can be
set manually.
one_step_forecast
logical, Default is true where demand lead time is calcluated as(forecast at pe-
riod t * leadtime) while if False, demand leadtime is calculated as (forecast of
period t to forecast of period t+leadtime-1)
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
error_metric metric is currently ’rmse’ and ’mae’, this calculates the error from period 1 to
period t unless metric_windows is set. this contributes to the calculation of
saftey stock. default is ’rmse’
metric_windows integer, for exammple if it is set to 4 rmse for t is calculated from t-1 to t-
4,default is FALSE
smoothing_error
number between 0 and 1 to smooth the error as alpha x error[t] + (1-alpha)x
error t-1, if metric_windows is used, smoothing error has to be FALSE
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate an inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution or a poisson distribution, also min can be set manually.
Max - inventory position is ordered whenever inventory position reaches min at the priod of review
48 safteystock_CIS_normal

Value
a list of two date frames, the simulation and the metrics. the metrics are (1) shortage cost, (2)
inventory cost which is the cost of one unit of inventory in one period,(3) which is the average
inventory level per period, (4) total orders made in the simulation, (5) ordering cost if any, (6)
total lost sales if any,(7) average ordering quantity across all orders,(8) ordering interval which is
the average time between each order,(9) item fill rate,(10) cycle service level, (11) average saftey
stock in each period,(12) the average sales in every order,(13) overall root mean square error, (14)
overall mean absolute error, (14) overall mean error,(15) overall mean absolute percentage error,(16)
the average flowttime which is the average time a unit spends on inventory and (17) the demand
classification.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
R_s_S_dynamic(demand = rpois(90,9),forecast = rpois(90,9),service_level = 0.9,
leadtime = 10,Review_period = 10,min = 70,Backlogs=TRUE)

safteystock_CIS_normal
safteystock_CIS_normal

Description
Calculating K value that reduces cost per item short.

Usage
safteystock_CIS_normal(
quantity,
demand,
standerddeviation,
leadtimeinweeks,
cost,
Citemshort,
holdingrate,
[Link] = TRUE
)

Arguments
quantity, numeric,quantity replinished every cycle.
demand numeric,annual Expected demand of the SKU .
standerddeviation
numeric, standard deviation of the SKU during season.
safteystock_CSL_normal 49

leadtimeinweeks
leadtime in weeks or order.
cost numeric,cost of the SKU
Citemshort numeric, peanlity cost of not satisfying demand if any, if not, zero is placed in
the argument.
holdingrate numeric„holding charge per item per year.
[Link] Logical, True to remove na.

Details

Calculating K value that reduces cost per item short inventory metric based on an assumed normal
distribution.

Value

a dataframe that contains calculations of K the cost per item short metric noting that condition must
me less than 1.

Note

this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples
safteystock_CIS_normal(quantity=3000,demand=50000,standerddeviation=4000,
leadtimeinweeks=4,cost=90,Citemshort=15,holdingrate=0.15,[Link]=TRUE)

safteystock_CSL_normal
safteystock_CSL_normal

Description

calculating saftey stock based on cycle service level rate.

50 safteystock_CSL_normal

Usage

safteystock_CSL_normal(
rate,
quantity,
demand,
standerddeviation,
leadtime,
[Link] = TRUE
)

Arguments

rate, cycle service level requested.

quantity quantity ordered every cycle.
demand numeric, expected annual demand of the SKU.
standerddeviation
numeric annual standard deviation of the demand.
leadtime numeric,leadtime of order in weeks.
[Link] logical with a default of TRUE

Details

calculating saftey stock and expected unit short based on the cycle service identified assuming a
normal distribution.

Value

a dataframe that contains calculations of the expected profit from a newsvendor model based on
normal distribution.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples

safteystock_CSL_normal(rate=0.95,quantity=30000,demand=28000,standerddeviation=5000,8,[Link]=TRUE)
safteystock_IFR_normal 51

safteystock_IFR_normal
safteystock_IFR_normal

Description
Calculating K value corresponding to item fill rate.

Usage
safteystock_IFR_normal(
rate,
quantity,
demand,
standerddeviation,
leadtime,
[Link] = TRUE
)

Arguments
rate numeric, item fill rate.
quantity, numeric,quantity replinished every cycle.
demand numeric,annual Expected demand of the SKU .
standerddeviation
numeric, standard deviation of the SKU during season.
leadtime leadtime in weeks of order.
[Link] Logical, TRUE to remove na.

Details
Calculating K value that corresponds to the desired item fill rate.

Value
a dataframe that contains calculations of K the item fill rate [Link] service level and expected
unit short.

Note
this is the first version of the inventorize package, all the fucntions are basic knowlege for supply
chain without any contribution from my side, the aim is to facilitate and ease much of the book-
keeping that is endured during stock analysis.

Author(s)
"haytham omar email: <h.omar5942@[Link]>"
52 saftey_stock_normal

Examples
safteystock_IFR_normal(rate=0.97,quantity=9000,demand=100000,
standerddeviation=5000,leadtime=4,[Link]=TRUE)

saftey_stock_normal saftey_stock_normal

Description
Calculating saftey stock based on the cycle service level.

Usage
saftey_stock_normal(
annualdemand,
annualstandarddeviation,
leadtimeinweeks,
csl,
[Link] = TRUE
)

Arguments
annualdemand numeric,annual Expected demand of the SKU .
annualstandarddeviation
numeric, standard deviation of the SKU during season.
leadtimeinweeks
leadtime in weeks or order.
csl cycle service level requested
[Link] Logical, remove na if TRUE

Details
Calculating saftey stock based on the cycle service level in an assumed normal distribution.

Value
a dataframe that contains calculations of K the cost per item short metric noting that condition must
me less than 1.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.
sim_base_normal 53

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
saftey_stock_normal(annualdemand=8000,annualstandarddeviation=600,
leadtimeinweeks=4,csl=0.92,[Link]=TRUE)

sim_base_normal sim_Base_normal

Description
Simulating a Base Stock policy.

Usage
sim_base_normal(
demand,
mean,
sd,
leadtime,
service_level,
Base = FALSE,
ordering_delay = FALSE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time periods.
sd standard deviation in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Base Set to False for automatic calculation,else manual input of base.
ordering_delay logical,Default is FALSE,if TRUE, orders are delayed one period.
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.
54 sim_base_pois

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated based on
a normal distribution. the base is calculated automatically based on the mean demand and standard
deviaiton. every period the order is exactly as the sales.

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
sim_base_normal(demand=rpois(80,6),mean=6,sd=0.2,leadtime=5,service_level=0.95,Base = 50,
shortage_cost= 1,inventory_cost=1,ordering_cost=1,ordering_delay=FALSE)

sim_base_pois sim_base_pois

Description
Simulating a Min,max policy or aslo called s,S policy, .

Usage
sim_base_pois(
demand,
lambda,
leadtime,
service_level,
Base = FALSE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_delay = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
lambda rate of demand in N time periods.
leadtime lead time from order to arrival
sim_base_stock_policy 55

service_level cycle service level requested

Base Set to False for automatic calculation,else manual input of base.
shortage_cost shortage cost per unit of sales lost.
inventory_cost inventory cost per unit.
ordering_delay logical,Default is FALSE,if TRUE, orders are delayed one period.
ordering_cost ordering cost for every time an order is made.

Details

The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated based
on poisson distribution..

Value

a list of two date frames, the simulation and the metrics.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples

sim_base_pois(demand = rpois(50,8),lambda = 4,leadtime = 4,shortage_cost = 20,ordering_delay=FALSE,

Base = FALSE,service_level = 0.70,inventory_cost = 50,ordering_cost=50)

sim_base_stock_policy sim_base_stock_policy

Description

Simulating a base stock policy where order is made every period equal to the demand sold and
having a Base stock enough for leadtime and saftey stock. The Function takes a demand vector,
mean of demand ,sd,lead time and requested service level to simulate an inventory system, orders
are lost if inventory level is less than requested demand, also ordering is made at day t+1, metrics
like item fill rate and cycle service level are calculated. the min is calculated based on a normal
distribution or a poisson distribution, also min can be set manually. demand and base adjustment (if
any) is ordered every period.
56 sim_base_stock_policy

Usage
sim_base_stock_policy(
demand,
mean = FALSE,
sd = FALSE,
leadtime,
service_level,
Base = FALSE,
ordering_delay = FALSE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
recalculate = FALSE,
recalculate_windows = FALSE,
plot = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time [Link] is FALSE and is automatically calcu-
lated. otherwise set manually.
sd standard deviation in N time [Link] is FALSE and is automatically cal-
culated. otherwise set manually.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
Base integer,Default is False and calculated based on mean and sd(normal) or rate of
demand (poisson)
ordering_delay logical,Default is FALSE,if TRUE, orders are delayed one period.
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ or ’poisson’
recalculate integer, the mean and sd is recalculated every X periods from first period to
x,default is FALSE .
recalculate_windows
integer, the min mean and sd windows to recalculate , for exammple if it is set
to 4 mean and sd is calculated from t to t-4„default is FALSE .
plot Logical, Default is False, if true a plot is generated

Value
a list of two date frames, the simulation and the metrics.
sim_minmax_normal 57

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
sim_base_stock_policy(demand = rpois(90,8),leadtime = 6,service_level = 0.95,recalculate = 5)

sim_minmax_normal sim_minmax_normal

Description
Simulating a Min,max policy or aslo called s,S policy, .

Usage
sim_minmax_normal(
demand,
mean,
sd,
leadtime,
service_level,
Max,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time periods.
sd standard deviation in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Max Max quantity for order up to level
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution.
58 sim_minmax_pois

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
sim_minmax_normal(demand=rpois(80,6),mean=6,sd=0.2,leadtime=5,service_level=0.95,Max=25,
shortage_cost= FALSE,inventory_cost=FALSE,ordering_cost=FALSE)

sim_minmax_pois sim_minmax_pois

Description
Simulating a Min,max policy or aslo called s,S policy, .

Usage
sim_minmax_pois(
demand,
lambda,
leadtime,
service_level,
Max,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
lambda rate of demand in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Max Max quantity for order up to level
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.
sim_min_max 59

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a poisson distribution.

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
sim_minmax_pois(demand = rpois(50,8),lambda = 4,leadtime = 4,shortage_cost = 20,
Max = 32,service_level = 0.70,inventory_cost = 50,ordering_cost=50)

sim_min_max sim_min_max

Description
Simulating a min max policy or also called s,S policy, . The Function takes a demand vector, mean
of demand ,sd,lead time and requested service level to simulate an inventory system, orders are lost
if inventory level is less than requested demand, also ordering is made at day t+1, metrics like item
fill rate and cycle service level are calculated. the min is calculated based on a normal distribution or
a poisson distribution, also min can be set manually. Max - inventory position is ordered whenever
inventory position reaches min

Usage
sim_min_max(
demand,
mean = FALSE,
sd = FALSE,
leadtime,
service_level,
initial_inventory_level = FALSE,
min = FALSE,
Max = FALSE,
Max_to_min = 1.3,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
60 sim_min_max

recalculate = FALSE,
recalculate_windows = FALSE,
plot = FALSE,
Backlogs = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time [Link] is FALSE and is automatically calcu-
lated. otherwise set manually.
sd standard deviation in N time [Link] is FALSE and is automatically cal-
culated. otherwise set manually.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
min integer,Default is False and min is calculated based on mean,demand and lead
time unless set manually
Max integer,Default is False and max is calculated as a ratio to min,otherwise set
manually.
Max_to_min numeric, the ratio of Max to min calculation , default 1.3 but can be changed
manually.
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
recalculate Logical, if true the mean and sd is recalculated every period from first period to
t,default is FALSE .
recalculate_windows
integer, the min mean and sd windows to recalculate , for example if it is set to 4
mean and sd is calculated from t to t-4„default is FALSE, if TRUE, recalculate
has to be TRUE Also.
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"
sim_min_max_dynamic 61

Examples
sim_min_max(demand = rpois(80,6),leadtime = 4,service_level = 0.95,recalculate = TRUE)

sim_min_max_dynamic sim_min_max_dynamic

Description
Simulating a min max policy or also called s,S policy, the Max is dynamically calculated based on a
forecast vector. . The Function takes a demand vector, mean of demand ,sd,lead time and requested
service level to simulate an inventory system, orders are lost if inventory level is less than requested
demand, also ordering is made at day t+1, metrics like item fill rate and cycle service level are
calculated. the min is calculated based on a normal distribution or a poisson distribution, also min
can be set manually. Max - inventory position is ordered whenever inventory position reaches min

Usage
sim_min_max_dynamic(
demand,
forecast,
leadtime,
service_level,
initial_inventory_level = FALSE,
Max_to_min = 1.5,
Max = FALSE,
one_step_forecast = TRUE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
error_metric = "mse",
smoothing_error = 0.2,
metric_windows = FALSE,
plot = FALSE,
Backlogs = FALSE
)

Arguments
demand A vector of demand in N time periods.
forecast the forecast vector of equal n periods to demand.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
62 sim_min_max_dynamic

Max_to_min numeric, the ratio of Max to min calculation , default 1.3 but can be changed
manually.
Max integer,Default is False and max is calculated as a ratio to min,otherwise set
manually.
one_step_forecast
logical, Default is true where demand lead time is calcluated as(forecast at pe-
riod t * leadtime) while if False, demand leadtime is calculated as (forecast of
period t to forecast of period t+leadtime-1)
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
error_metric metric is currently ’rmse’ and ’mae’, this calculates the error from period 1 to
period t unless metric_windows is set. this contributes to the calculation of
saftey stock. default is ’rmse’
smoothing_error
number between 0 and 1 to smooth the error as alpha x error[t] + (1-alpha) x
error t-1, if metric_windows is used, smoothing error has to be FALSE
metric_windows integer, for exammple if it is set to 4 rmse for t is calculated from t-1 to t-
4,default is FALSE
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders

Value
a list of two date frames, the simulation and the metrics. the metrics are (1) shortage cost, (2)
inventory cost which is the cost of one unit of inventory in one period,(3) which is the average
inventory level per period, (4) total orders made in the simulation, (5) ordering cost if any, (6)
total lost sales if any,(7) average ordering quantity across all orders,(8) ordering interval which is
the average time between each order,(9) item fill rate,(10) cycle service level, (11) average saftey
stock in each period,(12) the average sales in every order,(13) overall root mean square error, (14)
overall mean absolute error, (14) overall mean error,(15) overall mean absolute percentage error,(16)
the average flowttime which is the average time a unit spends on inventory and (17) the demand
classification.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
sim_min_max_dynamic(demand = rpois(90,6),forecast = rpois(90,6),
leadtime = 6,service_level = 0.95,one_step_forecast = FALSE,Max = 80,
distribution = 'normal',error_metric = 'mae',Backlogs=TRUE)
sim_min_Q 63

sim_min_Q sim_min_Q

Description
Simulating a Min,Q policy or also called S,Q policy, . The Function takes a demand vector, mean of
demand ,sd,lead time and requested service level to simulate an inventory system, orders are lost if
inventory level is less than requested demand, also ordering is made at day t+1, metrics like item fill
rate and cycle service level are calculated. the min is calculated based on a normal distribution or a
poisson distribution, also min can be set manually. Q (fixed quantity) is ordered whenever inventory
position reaches min

Usage
sim_min_Q(
demand,
mean = FALSE,
sd = FALSE,
leadtime,
service_level,
initial_inventory_level = FALSE,
min = FALSE,
Quantity,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
recalculate = FALSE,
recalculate_windows = FALSE,
plot = FALSE,
Backlogs = FALSE
)

Arguments
demand A vector of demand in N time periods.
mean average demand in N time [Link] is FALSE and is automatically calcu-
lated. otherwise set manually.
sd standard deviation in N time [Link] is FALSE and is automatically cal-
culated. otherwise set manually.
leadtime lead time from order to arrival
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
min integer,Default is False and min is calculated based on mean,demand and lead-
time unless set manually
64 sim_min_Q_dynamic

Quantity Fixed order quantity to be ordered at min

shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
recalculate Logical, if true the mean and sd is recalculated every period from first period to
t,default is FALSE .
recalculate_windows
integer, the min mean and sd windows to recalculate , for example if it is set to 4
mean and sd is calculated from t to t-4„default is FALSE, if TRUE, recalculate
has to be TRUE Also.
plot Logical, Default is False, if true a plot is generated
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders
is calculated from t to t-4„default is FALSE .

Value

a list of two date frames, the simulation and the metrics.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples
sim_min_Q(demand = rpois(90,7),leadtime = 5,service_level = 0.95,Quantity = 80,
recalculate = TRUE,distribution = 'normal',recalculate_windows = 5,Backlogs=FALSE)

sim_min_Q_dynamic sim_min_Q_dynamic

Description

Simulating a Min,Q policy or also called S,Q policy, the min is dynamically calculated based on a
forecast vector. . The Function takes a demand vector, mean of demand ,sd,lead time and requested
service level to simulate an inventory system, orders are lost if inventory level is less than requested
demand, also ordering is made at day t+1, metrics like item fill rate and cycle service level are
calculated. the min is calculated based on a normal distribution or a poisson distribution, also min
can be set manually. Q (fixed quantity) is ordered whenever inventory position reaches min
sim_min_Q_dynamic 65

Usage
sim_min_Q_dynamic(
demand,
forecast,
leadtime,
service_level,
initial_inventory_level = FALSE,
Quantity,
one_step_forecast = TRUE,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE,
distribution = "normal",
error_metric = "mse",
smoothing_error = 0.2,
metric_windows = FALSE,
plot = FALSE,
Backlogs = FALSE
)

Arguments
demand A vector of demand in N time periods.
forecast the forecast vector of equal n periods to demand.
leadtime lead time from order to arrival (order to delivery time)
service_level cycle service level requested
initial_inventory_level
integer,Default is False and simulation starts with min as inventory level
Quantity integer,Fixed ordering quantity.
one_step_forecast
logical, Default is true where demand lead time is calcluated as(forecast at pe-
riod t * leadtime) while if False, demand leadtime is calculated as (forecast of
period t to forecast of period t+leadtime-1)
shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
inventory_cost numeric,Default is FALSE inventory cost per unit.
ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
distribution distribution to calculate safety stock based on demand distribution, current choices
are ’normal’ ’poisson’,’gamma’ and negative binomial ’nbinom’
error_metric metric is currently ’rmse’ and ’mae’, this calculates the error from period 1 to
period t unless metric_windows is set. this contributes to the calculation of
saftey stock. default is ’rmse’
smoothing_error
number between 0 and 1 to smooth the error as alpha x error[t] + (1-alpha) x
error t-1, if metric_windows is used, smoothing error has to be FALSE
66 sim_min_Q_normal

metric_windows integer, for exammple if it is set to 4 rmse for t is calculated from t-1 to t-
4,default is FALSE
plot Logical, Default is False, if true a plot is generated.
Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders.

Value
a list of two date frames, the simulation and the metrics. the metrics are (1) shortage cost, (2)
inventory cost which is the cost of one unit of inventory in one period,(3) which is the average
inventory level per period, (4) total orders made in the simulation, (5) ordering cost if any, (6)
total lost sales if any,(7) average ordering quantity across all orders,(8) ordering interval which is
the average time between each order,(9) item fill rate,(10) cycle service level, (11) average saftey
stock in each period,(12) the average sales in every order,(13) overall root mean square error, (14)
overall mean absolute error, (14) overall mean error,(15) overall mean absolute percentage error,(16)
the average flowttime which is the average time a unit spends on inventory and (17) the demand
classification.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
sim_min_Q_dynamic(demand = rpois(90,8),forecast = rpois(90,8),leadtime = 5,
service_level = 0.95,Quantity = 80,initial_inventory_level = 80,
one_step_forecast=TRUE,shortage_cost = FALSE,
inventory_cost = FALSE, ordering_cost = FALSE,distribution= 'normal',
error_metric= 'rmse',metric_windows= FALSE,plot=TRUE)

sim_min_Q_normal sim_min_Q_normal

Description
Simulating a Min,Q policy or also calleD S,Q policy, .

Usage
sim_min_Q_normal(
demand,
mean,
sd,
leadtime,
service_level,
Quantity,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)
sim_min_Q_pois 67

Arguments

demand A vector of demand in N time periods.

mean average demand in N time periods.
sd standard deviation in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Quantity Fixed order quantity to be ordered at min
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.

Details

The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution.

Value

a list of two date frames, the simulation and the metrics.

Author(s)

"haytham omar email: <haytham@[Link]>"

Examples
sim_min_Q_normal(demand = rpois(50,8),mean = 5,sd=1,
service_level = 0.9,leadtime = 4,
shortage_cost = 5, Quantity = 12,inventory_cost = 1,ordering_cost = 50)

sim_min_Q_pois sim_min_Q_pois

Description

Simulating a Min,Q policy or also calleD S,Q policy, .

68 sim_min_Q_pois

Usage
sim_min_Q_pois(
demand,
lambda,
leadtime,
service_level,
Quantity,
shortage_cost = FALSE,
inventory_cost = FALSE,
ordering_cost = FALSE
)

Arguments
demand A vector of demand in N time periods.
lambda rate of demand in N time periods.
leadtime lead time from order to arrival
service_level cycle service level requested
Quantity Fixed order quantity to be ordered at min
shortage_cost shortage cost per unit of sales lost
inventory_cost inventory cost per unit.
ordering_cost ordering cost for every time an order is made.

Details
The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to
simulate and inventory system, orders are lost if inventory level is less than requested demand, also
ordering is made at day t+1, metrics like item fill rate and cycle service level are calculated. the min
is calculated based on a normal distribution.

Value
a list of two date frames, the simulation and the metrics.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
sim_min_Q_pois(demand = rpois(50,8),lambda = 4,leadtime = 4,shortage_cost =30,
Quantity = 12,service_level = 0.70,
inventory_cost = 50,ordering_cost=FALSE)
single_product_optimization 69

single_product_optimization
single_product_optimization

Description
Calculating the optimum price based on linear and logit models for a single product.

Usage
single_product_optimization(
x,
y,
service_product_name,
degree_poly = 3,
current_price,
plot = FALSE
)

Arguments
x a vector of average weekly/monthly/daily price data of a product.
y a vector of average weekly/monthly/daily sales data of a product.
service_product_name
the name of the product or service.
degree_poly, the polynomial degrees, the default is 3.
current_price the current price of the product or service
plot Default is false,if true, a plot is generated

Details
calculate the optimized price based on the price response function. the price response function is
measured twice, one with linear model and one time with a logit model. a simulation is then made
with each price response function to define the maximum revenue for each. finally, a suggestion
of which model to choose and the optimum price to use for this product. it is preferable to de-
seasonalize the sales data before fitting if the sales are affected by spikes and declines due to regular
events as holidays and weekends.

Value
a list of the squared error of th logit model, the squared error of the linear model, the best model for
this product, the optimum price for both the linear and the logit model, the current price,the a,b,c
parameters of th logit model,the linear model paremeters , data simulated at different price points
and th expected revenue and the fitting results of both the logit and linear model.
70 [Link]

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
single_product_optimization(x= c(5,8,10,12),y=c(25,21,23,15),
service_product_name = "Movie",current_price = 8.5,plot=TRUE)

[Link] [Link]

Description
calculating total logistics cost .

Usage
[Link](
quantity,
expected_annual_demand,
sd_annual_demand,
expected_leadtimeindays,
sd_leadtime,
costperunit,
transportcost,
holdingrate,
ordering_cost,
csl
)

Arguments
quantity quantity ordered every cycle.
expected_annual_demand
numeric, expected annual demand of the SKU.
sd_annual_demand
annual standard deviation of the SKU.
expected_leadtimeindays
expected lead time in days.
sd_leadtime standard deviation of leadtime
costperunit purchase cost of the SKU
transportcost transport cost of the SKU
holdingrate holding rate of the SKU
ordering_cost ordering cost per order placed
csl cycle service level desired
TQpractical 71

Details
calculating total logistics cost based on a normal distribution.

Value
a dataframe that contains calculations of the total logistics cost in detail.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
[Link](quantity=32,expected_annual_demand=1550,
sd_annual_demand=110,expected_leadtimeindays=64,sd_leadtime=8,
costperunit=107,transportcost=22,holdingrate=0.15,ordering_cost=500,csl=0.95)

TQpractical TQpractical

Description
Identyfing Practical ordering quantity based on the economic order [Link] is assumed that prac-
tical order quantity will be always withing 6

Usage
TQpractical(
annualdemand,
orderingcost,
purchasecost,
holdingrate,
[Link] = TRUE
)

Arguments
annualdemand, numeric annual demand of the SKU.
orderingcost, numeric ordering cost of the SKU.
purchasecost numeric purchase cost of the SKU.
holdingrate numeric holding rate of the SKU.
[Link] logical, TRUE.
72 TRC

Value
a dataframe that contains the economic order quantity and the practical order quantity, Tstar (opti-
mum)and Tpractical which is always away from the optimum up to 6

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"

Examples
TQpractical(annualdemand=1000,orderingcost=100,
purchasecost=72,holdingrate=0.25,[Link]=TRUE)

TRC TRC

Description
Identyfing Total relevant cost.

Usage
TRC(annualdemand, orderingcost, purchasecost, holdingrate, [Link] = TRUE)

Arguments
annualdemand numeric annual demand of the SKU.
orderingcost numeric ordering cost of the SKU.
purchasecost numeric purchase cost of the SKU.
holdingrate numeric holding rate of the SKU.
[Link] logical, TRUE to remove na.

Note
this is the second version of the inventorize package, all the fucntions are without any academic
contribution from my side, the aim is to facilitate and ease much of the bookkeeping that is endured
during stock analysis.

Author(s)
"haytham omar email: <haytham@[Link]>"
TRC 73

Examples
TRC(annualdemand=2500,orderingcost=250,purchasecost=98,
holdingrate=0.25,[Link]=TRUE)
Index

ABC, 3 profit_max_withfixedcost, 40
abc_dynamic, 4
R_s_S, 44
CriticalRatio, 5 R_s_S_dynamic, 46
CSOE, 6 reorderpoint, 41
reorderpoint_leadtime_variability, 42
[Link], 7 revenue_max, 43

elasticity, 8 saftey_stock_normal, 52
eoq, 9 safteystock_CIS_normal, 48
eoqsenstivity, 10 safteystock_CSL_normal, 49
EPN_singleperiod, 11 safteystock_IFR_normal, 51
EPP_singleperiod, 12 sim_base_normal, 53
EUSnorm_singleperiod, 13 sim_base_pois, 54
sim_base_stock_policy, 55
Hibrid_normal, 14 sim_min_max, 59
Hibrid_pois, 15 sim_min_max_dynamic, 61
hybrid_policy, 16 sim_min_Q, 63
hybrid_policy_dynamic, 18 sim_min_Q_dynamic, 64
sim_min_Q_normal, 66
inventorize, 20 sim_min_Q_pois, 67
inventorize-package (inventorize), 20 sim_minmax_normal, 57
inventorymetricsCIS, 20 sim_minmax_pois, 58
inventorymetricsCSL, 22 single_product_optimization, 69
inventorymetricsIFR, 23
[Link], 70
linear_elasticity, 24 TQpractical, 71
TRC, 72
Max_policy_dynamic, 25
MPN_singleperiod, 27
MPP_singleperiod, 28
Multi_Competing_optimization, 29

periodic_policy, 30
periodic_policy_dynamic, 32
Periodic_review_normal, 34
Periodic_review_pois, 35
possible_markdowns, 36
productmix, 37
productmix_storelevel, 38
profit_max, 39

74