Inventory Theory
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ScribdTranslationsInventory Theory
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ScribdTranslationsInventory theory aims to achieve a balance on the quantity that is desired.
to request and the exact time for the order at the same time that the cost of this is not
excessive for the company.
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1 Objective
2 Implications
3 Categories of inventory models
4 Elements of an Inventory Model
5 Inventory Models
6 Source
Objective
The objective of Inventory Management has two aspects that are
they contrast. On one hand, it is necessary to minimize inventory investment,
since the resources that are not allocated for that purpose can be invested in others
projects. On the other hand, it is necessary to ensure that the company has
sufficient inventory to meet the demand when it arises and for
that production and sales operations run smoothly.
Implications
The scientific management of inventory involves:
The formulation of a mathematical model that describes the behavior of
inventory system.
The determination of an optimal inventory policy regarding this
model.
The use of computational methods to keep a record of the
inventory levels and indicate when it's advisable to restock.
Categories of inventory models
(Álvarez,2001) dDefine the objective of inventory models such as the
presentation of some methods that help achieve good management
in inventories and an efficient relationship between them with theAdministration
Financial.
It also raises the existence of a great variety of inventory problems.
depending on the field in which they are framed, resulting in impossible
develop models for all situations that could exist.
(Gallagher,1990y A. Kaufmann1981They mention that inventory models
They can be grouped into two main categories: 1. Fixed quantity models of
reorder 2. Fixed period reorder models
Elements of an inventory model
Demand
Demand forecasting.
Inventory Costs.
Storage cost.
Order launch costs.
Supplies.
Inventory models
Deterministic models: In deterministic models, good decisions
they are based on their good results. The desired is achieved in a way
"deterministic", that is, risk-free. This depends on the influence that
they can have the uncontrollable factors in the determination of the results
from a decision and also in the amount of information that the decision maker
decision has to control such factors. (Gallagher,1990).
Optimal Economic Order Quantity (EOQ) Model
without exhaustion
Economic Order Quantity (EOQ) model
with exhaustion.
Probabilistic models: All the aforementioned models maintain the
existence of a demand and type of supplies perfectly known. In the
In most cases, this is not a realistic situation. Demand is not usually present.
is not predetermined, but even if their average values can be known
how normal it is that it ultimately does not match exactly with what is normally
It happens. Fixed Order Quantity Model when the cost per unit is unknown.
missing.
Fixed Period Reordering Model.
Fixed reorder period model.
Fixed reorder quantity model.
Source
Felipe Pilar and others. Mathematical Programming I. Pages 40-68.
Portela Silva José M. Vladimir Kuzmich. Economic Mathematical Model I
pages 1-19.
Gallagher, Charles A. Watson, Hugh J. Quantitative Methods for Decision Making
decisions.Page 156-166.
Anderson David R., Dennis J. Sweeney, Thomas A. Williams. Introduction to the
quantitative models for Management. Page 29.
Monograph. Operations Research. Author(s): Dr. Grisel Barrios
Castle. Msc. Meylin Miranda Rodríguez. 2008.
