{"title":"A Procedure for Scheduling Inventory of an Industry by Merging Forecasting and Linear Programming","authors":"Akm Selim Reza, S. Suraiya, M. B. Hasan","doi":"10.3329/dujs.v68i1.54598","DOIUrl":null,"url":null,"abstract":"In this paper, we develop a mathematical model combining forecasting and linear programming for a business organization of Bangladesh to calculate optimum order quantity and inventory cost. We test the model using raw data of the demand for the raw materials and spare inventory for the industry and find out minimum total inventory cost along with ordering cost and inventory holding cost. The developed model make a match between the forecasted demand of raw materials and spare inventory and the minimum total cost of inventory. Finally comparing minimum cost, we observe that our estimated appropriate forecasting method gives optimal inventory cost. \nDhaka Univ. J. Sci. 68(1): 65-70, 2020 (January)","PeriodicalId":11280,"journal":{"name":"Dhaka University Journal of Science","volume":"1 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2020-01-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Dhaka University Journal of Science","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3329/dujs.v68i1.54598","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
In this paper, we develop a mathematical model combining forecasting and linear programming for a business organization of Bangladesh to calculate optimum order quantity and inventory cost. We test the model using raw data of the demand for the raw materials and spare inventory for the industry and find out minimum total inventory cost along with ordering cost and inventory holding cost. The developed model make a match between the forecasted demand of raw materials and spare inventory and the minimum total cost of inventory. Finally comparing minimum cost, we observe that our estimated appropriate forecasting method gives optimal inventory cost.
Dhaka Univ. J. Sci. 68(1): 65-70, 2020 (January)