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Inventory System with Deterministic Demand

The document is a project presentation on developing an inventory system with deterministic demand. It outlines the presentation contents which include an introduction to inventory models, the problem statement addressing fixed demand situations, the aim and objectives of developing such a system, the scope and significance of the study, and the methodology used including choosing the economic order quantity model and implementing it in a program. It also provides an example problem on determining optimum lot size, scheduling period, and minimum total yearly cost and includes the solution, algorithm, and a flowchart.

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Alhaji Adamu
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51 views14 pages

Inventory System with Deterministic Demand

The document is a project presentation on developing an inventory system with deterministic demand. It outlines the presentation contents which include an introduction to inventory models, the problem statement addressing fixed demand situations, the aim and objectives of developing such a system, the scope and significance of the study, and the methodology used including choosing the economic order quantity model and implementing it in a program. It also provides an example problem on determining optimum lot size, scheduling period, and minimum total yearly cost and includes the solution, algorithm, and a flowchart.

Uploaded by

Alhaji Adamu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Project Presentation

ON
Development of an inventory
system with deterministic
demand
Computer Science
Department
IBB UNIVERSITY LAPAI, NIGER STATE

By: Alhaji Adamu Supervisors: Prof E.A Okeyinka/ Mr Aliyu Usman


Presentation outline

 Introduction

 Problem Statement

 Aim and Objectives

 Scope of the study

 Significance of the study

 Methodology

 Problem and solution

 Algorithm and flowchart

 Conclusion
© computer Science
Introduction

Inventory is a stock of materials either raw or finished


product. It also means a complete list of item such as property, good
in stock, or the content of a building.
Inventory models deals with usable but idle resources such as men,
machines, materials, and money etc.
Inventory models are concerned with two decisions:
1. How much to order(produce purchase) to replenish the
inventory of an items
2. When to order so as to minimize the actual cost.

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Problem Statement

It is extremely difficult to formulate a single general inventory

model which takes into account all variations in real systems. In

fact, even if such a model were developed. It may not be

analytically solvable. Thus inventory models are usually developed

for some specific situations.

This project deals with situations in which demand is assumed

to be fixed and completely known. Model for such situations are

called economic lot size models or economic order quantity models.


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Aim and Objectives

The aim of this project is to develop an inventory system


with deterministic demand.
The objectives of this project therefore are:
1. To develop an inventory system using deterministic
model.
2. To minimize the (actual or expected cost and
maximize profit.

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Scope of the study

The scope of this study is limited to a detailed analysis of


inventory system. It does not proffer methods to minimize
high cost of items.

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Significance of the study

The goal of inventory management is to ensure the

consistent delivery of the right product in the right

quantity to the right place at the right time.

Analyzing the inventory problem helps to minimize

the inventory cost and time.

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Methodology

The Economic Order Quantity (EOQ) was chosen based on the following parameters:
1. R : Number of items required per unit time, that is, demand rate
2. C1: Cost of Holding the item per unit time
3. C2: Shortage cost per item per unit time
4. C3: Ordering Cost per order
5. Q: Number of items ordered in one order
6. T: Interval between orders
7. Im: Number of Items that forms inventory at the beginning of time interval, t.
A program was implemented in Java programming language to solve the
inventory system problem using algorithm, and EOQ model.

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PROBLEM

A stockist has to supply 24,000 units of a product per year to his


customer, The demand is fixed and known and the shortage cost is assumed is
to be infinite. The inventory holding cost is ₦0.10 per unit per month and the
ordering cost per order is ₦350.
Determine

1. The optimum lot size q0

2. Optimum scheduling period t0

3. Minimum total variable yearly Cost C0

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SOLUTION

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ALGORITH

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Flowchart

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Conclusion

From the findings, the Economic order quantity has been determined

accurately and efficiently by solving the cost model subjected to some

constraints like optimum time between orders optimum number of

orders/unit time, total inventory cost/unit time and minimum inventory

cost/unit.

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Thank You

© computer Science

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