Inventory control system: a case study

Abstract

There are two objectives of inventory control system. The first one is to maximize the level of the costumer service by having the right goods in sufficient quantities, in the right place, and at the right time. The other is to minimise the cost of providing the right level of customer service. The inventory problem is to determine an ordering policy, determinig when to order and how much to order. In this study,an ordering policy is attempted to be determined for a small merchandise company. The A B C approach is one method to classify inventory items according to their importance. Different ordering policies could be used according to the result of A-B-C classification. The required data are collected and processed in order to determine the ordering polic for each item.