School of Business
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions
Chapter 13 |
Inventory Modeling
Spring 2020 - 2021
BMIS355- CHAPTER 13
,Outline
1. Classical Economic Order Quantity (EOQ) Model:
◦ The simplest of the inventory models.
2. Multi Item EOQ with Storage Limitation:
◦ This model deals with multiple items (no shortage allowed)
BMIS355- CHAPTER 13
, Inventory Policy
Inventory Policy is designed to answer Two Questions:
1. How much to order?
❖ Determine the size of the order at replenishment time.
2. When to order?
❖ Periodic reviews: order at the start of a time period (week/month).
❖ Continuous review: placing a new order whenever the inventory level drops to a
specific re-order point.
BMIS355- CHAPTER 13
Department of Management Information Systems
BMIS355: Quantitative Methods of Business Decisions
Chapter 13 |
Inventory Modeling
Spring 2020 - 2021
BMIS355- CHAPTER 13
,Outline
1. Classical Economic Order Quantity (EOQ) Model:
◦ The simplest of the inventory models.
2. Multi Item EOQ with Storage Limitation:
◦ This model deals with multiple items (no shortage allowed)
BMIS355- CHAPTER 13
, Inventory Policy
Inventory Policy is designed to answer Two Questions:
1. How much to order?
❖ Determine the size of the order at replenishment time.
2. When to order?
❖ Periodic reviews: order at the start of a time period (week/month).
❖ Continuous review: placing a new order whenever the inventory level drops to a
specific re-order point.
BMIS355- CHAPTER 13
