As order quantity is increased, the ordering cost per item will be cheaper due to saving of transportation and material handling costs. In this paper, two realistic assumptions such as quantity discount and budget limit are considered. Quantity discount means that all units in the order will be discounted according to the predetermined order levels. Budget limit represents that the costs for inventory investments are bounded. This paper develops a Lagrangian relaxation approach for a continuous review inventory model with a budget constraint and quantity discounts. Computational results indicate that the proposed approach provides a good solution. Sensitivity analysis is done to get some insights on budget limit and quantity discount. As budget limit or the amount of discount according to order quantity is increased, order quantity is increased, whereas reorder point is not always increased.

In many inventory situations, items for sales are generally stocked in a multiple of variations called stockkeeping units, such as size, color, style, and so on. For better management performance on sales items, proper and effective management is necessary for the stockkeeping units. In dealing with many items and those stockkeeping units, individual inventory analysis for each stockkeeping unit needs large amount of time or cost. Also the individual approach in inventory planning increases the demand variation of an item as the result by combining of demand variations of all stockkeeping units, accordingly the inventory turnover ratio and profitability are dropped down. This research suggests an effective method of systematic control of total stockkeeping units by generating from the total item basis, and shows how to reduce the safety stock and the average inventory with attaining a planned customer fill rate of the item and each stockkeeping units.

In this paper, we develop an efficient approach to solve a continuous review inventory system with a budget constraint when the semi-finished product and optional components are required to be assembled. We are, in particular, interested in a budget constraint that includes a service level. The service cost, such as labor and facility costs, tends to increase as the service level increase, and it makes the problem difficult to solve. Assuming that the reorder point for a semi-finished product is given, we show that the order quantity for the semi-finished product and the order quantity and reorder point for optional components can be determined by minimizing the total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is tested by numerical examples. By using sensitivity analysis, we conclude that, as the reorder point for semi-finished product increases, the order quantity for semi-finished product increases, whereas the order quantity and reorder point of optional components decreases.

If service level is increased, then service cost such as labor cost and facility cost will be increased. This service cost is included in the budget constraint in this paper. This service cost makes the problem difficult to solve. The purpose of this research is to develop an efficient approach for a continuous review inventory system with budget constraint when the semi-finished product and optional components are required to be assembled. Assuming that the reorder point for semi-finished product is given, order quantity for semi-finished product and order quantity and reorder point will be determined to minimize total cost that includes setup cost, inventory holding cost, and shortage cost. The performance of the proposed approach is checked by using an example.

  Operational strategy for inventory control in the distribution system has been given attention. If an individual enterprise implements the strategy, it is not easy to gain scale merits because of limited quantity or burden of inventory. In this study, w

  기업의 수요에서 자기상관을 인식하지 못하게 되면, 이 기업은 수요가 서로 독립이면서 동일한 분포를 따른다는 가정 하에 개발된 전통적인 재고주문방법을 시행하게 된다. 따라서 이 경우에 안전재고량, 재고부족 확률, 재고부족량 등과 같은 성과지표의 관점에서 전통적인 재고주문방법이 정확한 재고주무방법에 비하여 얼마만큼 비효율적인가를 알아보는 것은 기업경영의 측면에서 의미 있는 일이다. 이 논문에서는 정기주문시스템 하에서의 두 가지 재고 관리방법을 비교하기

As competition in manufacturing enterprise is contested, the scope of safely production planning, manufacturing enterprise should ensure, has been reduced. The more upstream of SCM, the more reduction of scope of production planning. As a result, order fluctuation is more sharply contested. Through improving the logistics network, it is best way that the end user's demand information is conveyed to upstream of SCM, but it is difficult in fact. In this paper, it mention the way of robustic adjustment, in the suppliers' point of view, the end user's demand information is dammed up, as they postpone responding the customer's order as a possible. And it will show the result of appling the way, as a case study.

ABC analysis is the process of dividing inventory items into three classes according to their monetary usage so that managers can focus on Items that have the highest monetary usage value, and has been widely used in practice since Its development in 1950