Potential storage model for the product of the Diyala State Company
DOI:
https://doi.org/10.31272/jae.i138.1116Keywords:
contingent inventory model, expected total cost, reorder point, continuous reviewAbstract
The issue of controlling stocks is of great importance in all companies and institutions, especially industrial and productive ones. The administration may face some difficulties in making storage decisions to determine the appropriate amount of storage that achieves coverage of customers’ demand at the lowest costs, as well as ensuring that the enterprise does not suffer a deficit in the event of an inability to meet orders, or exposes the storage to damage and stagnation in the event that it remains in the stores for a long period due to a lack of requests, and in both cases, the institution or company bears great losses, so it is better to use scientific methods and mathematical models to obtain storage policies that can be applied to improve the storage system and thus achieve the objectives of the company or institution, which is to provide service at the lowest cost and the highest profit.
This study dealt with a probabilistic model for storage that was applied to the data of the distribution transformer (400 | 11) produced by the Diyala State Company for the year (2020) that was obtained from the company, as well as the special costs, and by using the data of the monthly demand and the waiting period, it was found that they follow the normal distribution. Then the model indicators were obtained (the optimal order quantity, the re-order point, the expected cost of stocking, the expected cost of preparing the order and the expected deficit, the expected cost of this deficit, in addition to the expected total cost of stocking) and using the MATLAB program in the statistical analysis of the data to obtain these results.
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