SOLVING SINGLE-PERIOD INVENTORY MODEL PROBLEM

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Published: 2021-06-01

Page: 16-26


TADIOS KIROS KENEA *

Department of Mathematics, College of Natural Sciences, Arbaminch University, Arbaminch, Ethiopia.

*Author to whom correspondence should be addressed.


Abstract

Single-item inventory model occurs when an item is ordered only once to satisfy the demand for the period. The aim is determining out the optimum order quantity for the problems of a single-period inventory model with probabilistic demand using the assumption in simplest and shortest manner. Here Classical optimization method is the method used to find the optimum order quantity and increment analysis is a method that can be used to determine the optimal order quantity for a single-period inventory model. We see that integration of density of demand during expected period with respect to demand has a long way in a single-period inventory model with uniform probabilistic demand. Hence it is possible to find optimal inventory policy without using the integral. Therefore, a new way is simpler and shorter method to solve single period inventory model problems without integrating density of demand during the period with respect to demand. A new way is important to apply scientific inventory control and to determine the optimal inventory policy that can be used by business organizations.

Keywords: Dynamic programming, economic order quantity, expected loss, optimum inventory policy, order quantity


How to Cite

KENEA, T. K. (2021). SOLVING SINGLE-PERIOD INVENTORY MODEL PROBLEM. Asian Journal of Mathematics and Computer Research, 28(2), 16–26. Retrieved from https://ikprress.org/index.php/AJOMCOR/article/view/6424

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