Design of a Economic Order-Point System based on Forecasted Inventory Positions

抄録

One of the important issues in inventory management is to choose the right time and amount for a replenishment order. The ordering systems for determining the time and amount are classified roughly into order-point systems and periodic ordering systems. Generally, it is thought that order-point systems are those systems in which a decision is made after demand arrives, and periodic ordering systems are systems in which a decision is made in advance using demand forecasts. In this paper, we propose a forecast-based economic order-point system which utilizes demand forecasts. The order-point system is operated under a periodic review system in which the inventory status is recorded at a fixed interval. The essence of the forecast-based economic order-point system is that the order-point level is set for the forecasted future inventory position and the amount to order is economically determined from the demand forecasts. The performance of the proposed inventory control system is evaluated by numerical simulation under a demand model and a forecasting model. The results clearly show that the proposed order-point system raises economical efficiency compared to the conventional ordering systems.