DETERMINISTIC INVENTORY MODEL FOR NON-DETERIORATING ITEMS USING THE ITERATIVE ALGORITHM

Anna Antonyova; Peter Antony

Volume : VIII, Issue : VII, July - 2019

DETERMINISTIC INVENTORY MODEL FOR NON-DETERIORATING ITEMS USING THE ITERATIVE ALGORITHM

Anna Antonyova, Peter Antony

Abstract :

Setting the proper inventory model means replenishment rate, keeping the necessary inventory reserve according to demand and production process. Ordering price that is based on a fixed agreement of regular delivery is different from the reordering price. Researchers in the articles available in the literature considered mostly the inventory model for constant demand or linearly changing demand. The presented deterministic inventory model describes the system of replenishment rate in terms of un–regular, non–fixed demand that is typical especially for SMEs. The model prevent the situation if, due to the lack of some material, production has to be stopped or interrupted for a certain period of time. The model is based on iterative method using the advantages of modern information technology