Modelling inventory

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Permalink Reply by Jack on September 10, 2008 at 2:13pm

I think you may need to give a little more information, for starters are you building some sort of valuation type model, or is this a working utility type model? Also important is how your the data is being help, as this will impact your model inputs.

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Permalink Reply by David Kitchnoge on September 14, 2008 at 7:22pm

Jack,

Thanks for your questions. I need to model the optimum inventory holding for a client using parameters such as inventoty turnover and the lead time required to replenish stock.

The client sources most of its inventory from imports and it takes a while before the orders reach his warehouse while sales are taking off at the counter.

I need to build a model that simulates stock flow such that an economic order quantity is achieved.

Does anyone have such a model which I can use as a basis rather than starting from scratch?

Cheers
David

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Permalink Reply by Daniel Chow on September 11, 2008 at 2:07am

The attached document on inventory management by the New Zealand Employers and Manufacturers Association Northern Inc (EMA) may help.

Attachments:

• Inventory Management.pdf, 75 KB

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Permalink Reply by David Kitchnoge on September 14, 2008 at 7:09pm

Thanks a lot Daniel for sharing this.

Much appreciated.

Cheers
David

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