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Journals / Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi / 2016 / Cilt: 4 - Sayı: 2

Reorder Point and Replenishment Point of Dynamic Inventory Model under Shortages

İbrahim Zeki AKYURT
Pages
69–85
Publication Date
2016-04-01
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Thereafter, three cost calculations and their effects on reorder point and replenishment point are analyzed at two different levels

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In this study, single item dynamic inventory control model is analyzed.
📊
Key Findings & Data:In this model the decision maker counts the inventory periodically, calculates the reorder point and the replenishment point, and decides to replenish the stock according to the inventory position.
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Conclusion & Impact:Thereafter, three cost calculations and their effects on reorder point and replenishment point are analyzed at two different levels
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Replenishment Point · Reorder Point · Inventory Control

Abstract

In this study, single item dynamic inventory control model is analyzed. In this model the decision maker counts the inventory periodically, calculates the reorder point and the replenishment point, and decides to replenish the stock according to the inventory position. This calculation is difficult and requires complex mathematical transactions when the demand and lead time are stochastic. For this reason, in this study, the simulation method and genetic algorithms method are used to calculate the reorder point and replenishment point by using total cost function per period. In this function, the ordering cost, the holding cost and the penalty cost are taken into account. The results of these two methods are compared with classic method based on real data where the demand distribution is normal, and the lead time distribution is uniform. Thereafter, three cost calculations and their effects on reorder point and replenishment point are analyzed at two different levels

Özet

In this study, single item dynamic inventory control model is analyzed. In this model the decision maker counts the inventory periodically, calculates the reorder point and the replenishment point, and decides to replenish the stock according to the inventory position. This calculation is difficult and requires complex mathematical transactions when the demand and lead time are stochastic. For this reason, in this study, the simulation method and genetic algorithms method are used to calculate the reorder point and replenishment point by using total cost function per period. In this function, the ordering cost, the holding cost and the penalty cost are taken into account. The results of these two methods are compared with classic method based on real data where the demand distribution is normal, and the lead time distribution is uniform. Thereafter, three cost calculations and their effects on reorder point and replenishment point are analyzed at two different levels.

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Cite This Article

AKYURT, İ. Z. (2016). Reorder Point and Replenishment Point of Dynamic Inventory Model under Shortages. Siyaset, Ekonomi ve Yönetim Araştırmaları Dergisi, Cilt: 4 - Sayı: 2, 69–85. https://ajindex.com/articles/173699

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