A real-time inventory model to manage variance of demand for decreasing inventory holding cost


Torkul O., Yilmaz R., Selvi I. H. , Cesur M. R.

COMPUTERS & INDUSTRIAL ENGINEERING, vol.102, pp.435-439, 2016 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 102
  • Publication Date: 2016
  • Doi Number: 10.1016/j.cie.2016.04.020
  • Journal Name: COMPUTERS & INDUSTRIAL ENGINEERING
  • Journal Indexes: Science Citation Index Expanded, Scopus
  • Page Numbers: pp.435-439
  • Keywords: Real-time inventory model, Inventory management, Inventory holding cost, Safety stock, CONTROL-SYSTEM, INFORMATION, UNCERTAINTY, STRATEGIES

Abstract

Variance of demand is one of the inevitable problems in the manufacturing environment. Market conditions and competition force companies reducing costs. Different approaches and methods have been developed to remedy these problems. Common points of these approaches are utilizing resources and responding in the shortest time possible. To achieve better inventory management, inventory-holding cost is tried to be decreased under the same service level. Re-order point is arranged dynamically regarding couple of factors in some studies. We try to arrange the re-order point in a time based manner by transforming the re-order point into re-order time, which eliminates the safety stock; and it makes the inventory model real-time.