Open AccessA Procedure for Scheduling Inventory of an Industry by Merging Forecasting and Linear Programming
Author(s) -
AKM Selim Reza,
Sayma Suraiya,
M Babul Hasan
Publication year - 2020
Publication title -
the dhaka university journal of science
Language(s) - English
Resource type - Journals
eISSN - 2408-8528
pISSN - 1022-2502
DOI - 10.3329/dujs.v68i1.54598
Subject(s) - spare part , inventory cost , inventory theory , total cost , scheduling (production processes) , operations research , holding cost , linear programming , computer science , economic order quantity , raw material , inventory management , order (exchange) , carrying cost , inventory control , operations management , mathematical optimization , economics , mathematics , business , algorithm , microeconomics , supply chain , marketing , chemistry , organic chemistry , finance
In this paper, we develop a mathematical model combining forecasting and linear programming for a business organization of Bangladesh to calculate optimum order quantity and inventory cost. We test the model using raw data of the demand for the raw materials and spare inventory for the industry and find out minimum total inventory cost along with ordering cost and inventory holding cost. The developed model make a match between the forecasted demand of raw materials and spare inventory and the minimum total cost of inventory. Finally comparing minimum cost, we observe that our estimated appropriate forecasting method gives optimal inventory cost.
Dhaka Univ. J. Sci. 68(1): 65-70, 2020 (January)