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Erschienen in:
2018 | OriginalPaper | Buchkapitel
2. Inventory Control Systems: Design Factors
verfasst von : Dinesh Shenoy, Roberto Rosas
Erschienen in: Problems & Solutions in Inventory Management
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Abstract
In this chapter, we discuss the key design factors – frequency of review, timing of order placement, and order size – that need to be kept in mind while adopting an inventory control system for a given business. While several inventory control systems and their variants are available in literature, we review three popular inventory control systems in this chapter:
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Continuous Review, Fixed Order Quantity (s, Q) System
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Continuous Review, Order-Up-to-Level (s, S) System
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Periodic Review, Order-Up-to-Level (T, S) System
Cost is often the basis for optimization in most of the problems that businesses encounter. An inventory control system that minimizes the total inventory costs would be the one an organization needs to adopt. In this chapter, we discuss in detail three relevant inventory costs – carrying cost, ordering cost, and shortage cost – as well as methods to estimate those.
Toward the end of this chapter, we present a running example that we would use across all chapters. This would help get a common basis for learning inventory management concepts.