Average Monthly Appraisal of Inventory Management Policy Using the Probabilistic Model
Abstract
The development of inventory policy for an organization appears to be a tedious process for most organizations.
The lack of an effective inventory management culture can propagate material wastage while simultaneously lowering cost effectiveness. In this study, an average monthly appraisal of the inventory management policy of Technodrill is examined. This study was carried out employing the probabilistic model. The optimum inventory level on one hand, as well as the ordering and reordering of the packets of electrodes utilized for welding oil and gas pipelines, were both ascertained for the months of January to December for the period from 2002 to 2012. The monthly buffer stock was obtained. It is inferred that these inventory variables were employed to develop a policy which was recommended to direct the firm studied. A step by step methodology is shown in the body of the work.
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DOI: http://dx.doi.org/10.52155/ijpsat.v29.2.3810
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