SIMPLY OPTIMAL - BEYOND EOQ FOR A POPULAR CLASS OF INVENTORY PROBLEMS

W. Van Wijck

Abstract


ENGLISH ABSTRACT: True optimal solution s to real life problems are normally only achievable at the expense of great complexity. Every now and then however, one is almost stunned by the simplicity of a good solution to a practical problem. This paper discusses a relatively simple method for determining the joint optimum order quantity and reorder point for the case where service level is specified as a desired fraction of demand to be satisfied directly from stock. Separate solutions were derived for complete backorders and lost sales, and the method is equally applicable to fixed order quantity and periodic review inventory problems . Demand during the lead time is assumed to be normally distributed . The intent of the paper is to focus on the findings and the application of the method, rather than the mathematical derivation of the formulae itself.

AFRIKAANSE OPSOMMING: Ware optimale oplossings vir werklike praktiese probleme is gewoonlik net bereikbaar ten koste van groot kompleksiteit. Elke nou en dan staan 'n mens egter bykans verstom omtrerit die eenvoud van 'n voortreflike oplossing vir 'n bepaalde probleem. Hierdie artikel bespreek 'n relatief eenvoudige metode om die gesamentlike optimale bestel-grootte en veiligheidsvoorraad te bepaal, vir die geval waar dienspeil uitgedruk word as die proporsie van voorraad-items wat op eerste aanvraag direk uit voorraad op hande voorsien word. Aparte oplossings is gevind vir die gevalle van volledige agterstallige bestellings en volledige verlore verkope , en die metode is ewe toepaslik vir vaste bestel-hoeveelheid- en periodieke hersiening-voorraad-stelsels. Die normaal-verdeling is as die statistiese verdeling van aanvraag gedurende die leityd aanvaar, Die artikel fokus op toepassing en bevindings eerder as op die wiskundige afleiding van die formules.


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DOI: https://doi.org/10.7166/10-1-374

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