Article ID: | iaor1990860 |
Country: | United States |
Volume: | 28 |
Start Page Number: | 20 |
End Page Number: | 23 |
Publication Date: | Oct 1987 |
Journal: | Production and Inventory Management Journal |
Authors: | Saunders Gary |
Organizations that maintain a substantial investment in inventory should search for cost-effective inventory control methods. This microcomputer model (available to readers) simulates inventory flow over a period of time, using cumulative probabilities for both daily demand and reorder lead-time distributions. It also includes the effects of stockouts, price breaks, back-order costs, and the cost of capital.