Inventory Control System for Determining Optimal Quantity; Case Study: Agricare Limited, Tanoso-Kumasi
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2011-06-14
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Abstract
This thesis addresses the problem of inventory management of an Agricare Limited, Tanoso-Kumasi. The objectives of this study includes: (a) to model poultry feed inventory as a Retroactive Holding Cost problem, (b) to determine optimal order quantity, optimal total inventory cost and cycle time of poultry feed inventory using Retroactive solution algorithm. We use real data (processing times, random yield factors, etc) from a poultry feed manufacturing company, (Agricare Limited) providing simultaneously the model validation and the evaluation of the relative performance of the company. The approach used to analyze this problem was simulation based optimization. The holding cost per unit of the item per unit time is assumed to be an increasing step function of the time spent in storage. Time-dependent holding cost increase step function model is considered, namely: Retroactive holding cost increase. Procedures were used for determining the optimal order quantity and the optimal cycle time for retroactive holding cost.
Description
A thesis Submitted to the Department of Mathematics, Kwame Nkrumah University of Science and Technology, Kumasi, In Partial Fulfillment of the requirement For the Degree of MASTER OF SCIENCE