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Article: Optimizing economic order quantity.(inventory control)
- Article from:
- IIE Solutions
- Article date:
- January 1, 2001
- Author:
CopyrightCOPYRIGHT 2001 Institute of Industrial Engineers, Inc. (IIE). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Inventory models
for calculating optimal order quantities and reorder points existed long before the arrival of the computer. When the first Model T Fords were rolling off the assembly line, manufacturers were already reaping the financial benefits of inventory management by determining the most cost-effective answers to the questions of when and how much. Long before acronyms such as JIT, TQM, TOG, and MRP rolled off the tongues of industrial engineers, companies were using those same (then-unnamed) concepts to manage production and inventory.
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