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Inventory Control System On Three Products Of Three Supermarkets
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1.6 DEFINITION OF TERMS
There are some terms that are used in inventory control, these includes:
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Lead time or Delivery lags: This is the time between the placement of
an order and its receipt. Order for replenishment must be placed when
inventory falls to the level of lead-time demand.
- Economic order quantity (EOQ): This is the external quantity ordered for which minimize total inventory cost.
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Safety stock: This is the stock held to cover possible change in demand
or supply during the lead time. It is also known as minimum stock.
- Maximum stock: This is a level, as an indicator above which stock are too high.
- Re-order level Quantity: This is the actual stock level that when reached causes an order to be placed.
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Re-order quantity: This is the amount of stock that is ordered through
the reorder level. It is normally the Economic order quantity or
Economic basic quantity.
- Inventory Cycle: This is the part of an inventory graph that regularly repeats itself.
- Length of Inventory: This is the length of time over which an inventory cycle is extended.
Notations For The Models
D = Demand rate (quantity demanded per period)
Q = Quantity ordered per cycle
C = Production cost per item
Co = Set up cost (cost for ordering unit of item per period)
T = Run time
Ch = Holding cost per item per unit time
Cp = Purchase cost per cycle
to = Inventory cycle length
I =
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ABSRACT - [ Total Page(s): 1 ]This research work entails the process involved in inventory control of three supermarkets on three products they sell. The supermarkets include Noble supermarket, Pick ‘n’ smile supermarket and Maris supermarket as a case study. We take their inventory on Candid Red Wine, So Klin Detergent (900g sachet) and Peak Milk Powder. In this research work, data for the observation were collected and analyzed using statistical inventory control models. The inventory models used here were Sin ... Continue reading---
