an inventory model
DESCRIPTION
for stochastic processesTRANSCRIPT
AN INVENTORY MODEL
SITI FATIMAH BINTI ZAKARIA 1120788HALEEDA BINTI AMRAN 1120072ROZAILA ADIBA BINTI RAZMI 1121370SITI HAJAR BINTI MOHD HANAFI 1121634NOR SYAMIMI FARHAH BINTI IBRAHIM1120852
DEFINITION• Mathematical equation or formula
that helps a firm to determine the economic order quantity, and the frequency of ordering.• To keep goods or services flowing
to the customer without interruption or delay.
• S : Maximum number of stock• s : Minimum number of stock• If stock < s , restock. stock > s , no replenishment
How does it work?
nX
n
: The quantity on hand at the end of period n just prior to restocking.
: The quantity demanded in the nth period
0ka and
0
1k
ka
10 =
0 =
6 =
-1 =
2 =
FORMULA :
EXAMPLE
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