Abstract:
In the classical statement of the one-period inventory problem, one determines the optimum order quantity to maximize the expected profit. In this case, the variability of costs – or benefits – resulting from different inventory policies is completely ignored. Operations of inventory management and inventory control has been attractive in many industries to hedge against demand uncertainty and to promote profits by decreasing lost sales, saving on inventory and providing higher quality service. Hence, it is extremely important to develop quantitative models that will provide insights on how to manage systems with some form of flexibility in their operations. In this research, I propose to study inventory management and inventory control, resource allocation and pricing decisions. The main objectives of this research is inventory management and inventory control system including data-collection terminals that acquire product-identification data identifying products placed on store shelves, product-placement data identifying the locations of the products in the store. Within the traditional inventory management, a feedback policy for inventory restock must be determined to mitigate the impact of time varying product demand. In most cases this policy is designed to minimize inventory variations, which will reduce the required level of safety stock. Kenana company has banned using the old rigid and bureaucratic system where in client used to send their delegates or agents to the company to find out how much sugar storage was there; now the whole company system centrally linked by computer network which renders types of information as regards any products or anything produced by the factory.