Related Local Literature
CHAPTER II
Review of Related Literature This study deals with the review and analysis of the literature and studies relevant to inventory management techniques that the researchers will be using in the optimization. It consists of information culled from studies and literature, both local and foreign, from which this study is subject to. This chapter will certainly help in giving the reader a better understanding of what is Economic Order Quantity model and Dynamic Programming to optimization of the inventory system.
Definition: Inventory Inventory refers to any kind of resources having economic value and is maintained to fulfil the present and future needs of theconsumers.It is a physical stock of items that business or production enterprise keeps in hand for efficient running of affairs or its production. Inventory is the quantity of goods, raw materials or other resources that are idle at any given point of time.
Inventory control is the means by which materials of the correct quantity and quality is made available as a when required with due regard to economy in storage and ordering costs and working capital. It is also defined as the systematic location, storage and recording of goods in such a way that desired degree of service can be made to the operating shops at a minimum ultimate cost” (S.C sharma (1999). P. 509, 512).
Inventory model: Economic Order Quantityand Dynamic Programming
For over a century, the literature encompassing hundreds of books and journals has included frequent writings of management scientists applying quantitative methods to help inventory managers make two critical decisions: how much inventory to order, and when to order it. Inventory management started as early as the beginning of the 20th century when F. W. Harris originally developed the lot size formula or the EOQ model in 1915. R. H. Wilson independently developed the same formula in 1918. Apparently, Wilson popularized the model so the EOQ model is
Review of Related Literature This study deals with the review and analysis of the literature and studies relevant to inventory management techniques that the researchers will be using in the optimization. It consists of information culled from studies and literature, both local and foreign, from which this study is subject to. This chapter will certainly help in giving the reader a better understanding of what is Economic Order Quantity model and Dynamic Programming to optimization of the inventory system.
Definition: Inventory Inventory refers to any kind of resources having economic value and is maintained to fulfil the present and future needs of theconsumers.It is a physical stock of items that business or production enterprise keeps in hand for efficient running of affairs or its production. Inventory is the quantity of goods, raw materials or other resources that are idle at any given point of time.
Inventory control is the means by which materials of the correct quantity and quality is made available as a when required with due regard to economy in storage and ordering costs and working capital. It is also defined as the systematic location, storage and recording of goods in such a way that desired degree of service can be made to the operating shops at a minimum ultimate cost” (S.C sharma (1999). P. 509, 512).
Inventory model: Economic Order Quantityand Dynamic Programming
For over a century, the literature encompassing hundreds of books and journals has included frequent writings of management scientists applying quantitative methods to help inventory managers make two critical decisions: how much inventory to order, and when to order it. Inventory management started as early as the beginning of the 20th century when F. W. Harris originally developed the lot size formula or the EOQ model in 1915. R. H. Wilson independently developed the same formula in 1918. Apparently, Wilson popularized the model so the EOQ model is