A Monte Carlo exercise to reduce the excess stock situation in a television factory
This thesis aims to determine the most suitable inventory policy that will give the minimum total cost by finding the optimal amount of goods to order at a time. The Monte Carlo Method, an approach for reconstructing probability distributions based on the selection or generation of random numbers us...
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
1987
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/16000 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | This thesis aims to determine the most suitable inventory policy that will give the minimum total cost by finding the optimal amount of goods to order at a time. The Monte Carlo Method, an approach for reconstructing probability distributions based on the selection or generation of random numbers used as inputs for a simulation model, was applied to a television manufacturing firm's inventory sytem. Based on the simulation, a new policy calling for orders of 1,500 units of raw materials every two months was recommended, and its effect against the present policy of ordering 1,200 units of raw materials on a monthly basis was evaluated. The recommended policy, if implemented, will yield a substantial amount of savings to the firm. |
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