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Chapter Five

Inventory Control Subject Inventory Control Subject to Uncertain Demandto Uncertain Demand

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Frequency Histogram for a 52-week History of Sales of

The Computer Journal at Mac’s

Fig. 5-1

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Frequency Histogram and Normal Approximation

Fig. 5-2

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Expected Cost Function for Newsboy Model

Fig. 5-3

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Determination of the Optimal Order Quantity for Newsboy Example

Fig. 5-4

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Changes in Inventory Over Time for Continuous-Review (Q, R) System

Fig. 5-5

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Expected Inventory Level for (Q, R) Inventory Model

Fig. 5-6

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Pareto Curve: Distribution of Inventory by Value

Fig. 5-7

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Exchange Curve of Replenishment Frequency and Inventory Value

Fig. 5-8

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Exchange Curve of the Investment in Safety Stock and

Fig. 5-9

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Exchange Curve:Harvey’s Specialty Shop

Fig. 5-10

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Typical Three-Level Distribution System

Fig. 5-11

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Typical Three-LevelAssembly System

Fig. 5-12