An optimization approach for inventory costs in probabilistic inventory models: A case study

Inventories represent stocks of goods necessary for operations of sales or manufacturing in a company. These allow to the companies meet their sales levels, while representing an opportunity to the cost control and the decision-making. This paper presents an optimization approach to minimize the inv...

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Autores:: Pulido-Rojano, Alexander
Andrea, Andrea
Padilla-Polanco, Miguel
Sánchez-Jiménez, Milton
De la-Rosa, Ladianys

Tipo de recurso:

Fecha de publicación:: 2020

Institución:: Universidad Simón Bolívar

Repositorio:: Repositorio Digital USB

Idioma:: eng

Description
Summary:	Inventories represent stocks of goods necessary for operations of sales or manufacturing in a company. These allow to the companies meet their sales levels, while representing an opportunity to the cost control and the decision-making. This paper presents an optimization approach to minimize the inventory costs in probabilistic inventory models of independent demand. The approach has been validated for set the policy optimal of inventories with probabilistic demand within a company that markets disposable products. The established policy aims to minimize the inventory costs by using the standard deviation of the historical data, the mean deviation of forecast errors and the mean deviation of the historical data. For the determination of the economic order quantities, three types of products were selected, taking historical sales data. Likewise, different forecasting methods were used, selecting the one that minimizes the mean squared error for the forecasted demand. The proposed methodology is practical and easy to use in companies where inventories have probabilistic and independent demand. Also, the proposed approach allowed optimize the costs related to holding costs, ordering costs and safety stock costs.

An optimization approach for inventory costs in probabilistic inventory models: A case study

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