DETERMINISTIC INVENTORY MODEL AND ITS APPLICATION TO MOUKA FOAM INDUSTRY
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- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
It is often necessary to keep inventory in order to meet with fluctuations in demand and also to avoid shortages that might lead to loss of goodwill. Thus, most companies, to absorb certain fluctuations in demand strictly adhere to safety stock control. This approach could be the deterministic inventory which assumes that demand is known with certainty. The deterministic inventory model which reviews when to place an order or produce more goods was applied to a foam industry in this work. Empirical evidence therefore reveals that keeping inventory is an integral part of production and hence, production cannot be said to be completed until goods produced are bought by the final consumer.
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