A heuristic treatment of the lot-size reorder-point (Q,r) inventory model with stochastic demand on automotive liquified petroleum gas (LPG) converter industry (lost sales case)

• Main Author: Lopez, Raymond B.
• Format: text
• Language: English
• Published: Animo Repository 1985
• Subjects: Heuristic programming; Stochastic processes; Inventory control; Liquefied petroleum gas industry
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/15990
• Institution: De La Salle University

Inventory is an integral part of almost every business entity and is intimately bound up with the essential purpose of the business which is sales or production. In view of this, any inventory problem has repurcussion to production or sales in which difficulty arises to identify any component of the problem as being inventory related in a strict sense. In making a study of the inventory system Enertrade, Inc. (a case analysis), the author1. formulates a heuristic mathematical model to quantitatively analyze the inventory system of the company 2. finds a proper inventory policy using stochastic models and3. applies the Lot-Size Reorder Point (Q, r) Model with stochastic demand in order to minimize the cost of inventory.