Inventory Management

Inventory Management

Introduction

Companies maintain inventories of raw materials and finished products. Inventories of raw materials used as inputs into the production process and finished goods inventories are used to meet customer demand. Since these stocks often represent a considerable investment decisions regarding the amounts of inventories are important. Inventory models and mathematical description of inventory systems provide a basis for these decisions. In order to maintain an inventory (stock of goods) for sale or potential use is a common practice in the business world. The retail companies, wholesalers, manufacturers and even blood banks usually store goods or articles. In a small business, the manager can maintain tally of the stock and take these decisions. On the other hand, this may not be practicable even in SMEs; many companies have saved large sums of money to put into practice the "scientific management of inventory”. In this report, we will be discussing and analyzing the optimal order quantity for the Import Beer product line

Model for Optimal Order Quantities

Modeling of the warehouse are usually made the following assumptions which includes rate of consumption of supplies from the warehouse - a constant, which we denote M (units of inventory per unit time), in accordance with the schedule of changes in the magnitude of the expenditure of resources in a straight line; replenishment batch size Q is constant, so that the inventory management system - a system with a fixed order quantity, unloading time the party arrived a little replenishment, we assume it equal to zero; the time from decision to completion before the arrival of the booked party is a constant ?t, so that we can assume that the party ordered to come as quickly, if necessary, so that it came just at a certain point, it should be ordered at the time ...