Mathematical Model for Economic Packaging Setup Frequency in a Multi Item, Time Proportional Demand Inventory System, With Storage Limitation

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Author(s) Delphine.Suliy. Ghormo | A. Tahir | Ibrahim Isa Adamu | A. A. Momoh
Pages 178-184
Volume 5
Issue 4
Date April, 2016
Keywords Joint Replenishment, Multi Item, Holding Cost, Storage Limitation, Time Proportional Demand
Abstract

This work is aimed at developing a mathematical model for multi item inventory system incorporating storage limitation. In deriving the model, we adopted compartment modeling approach. The model equation derived can be used to determine the optimal cost of maintaining inventory with limited storage facility for manufactured and packaged products. The result generated, hypothetical case study, shows that joint replenishment for multi item inventory system with storage limitation incurs extra cost than same inventory system without storage limitation this is in line with inventory practice because, storage limitation attracts additional cost due to lost sales and good will from customers, except if backlogging is allowed or no shortages are allowed. Thus in an inventory system with storage limitation without backlogging, our model is recommended

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