Comparison of Methods of Material Control for a Multi-Level Inventory Distribution System

摘要

Multilevel integration in a logistical chain is an important and not, as yet, satisfactorily solved problem in industry. This paper investigates that aspect of operations management which is vital for business success, namely inventory control and minimisation of costs in distribution systems. manufacturing and service industries require the distribution of gods through several levels of inventory to provide satisfactory service to customers. The costs associated with inventory are a significant percentage of total annual sales value. Model building and simulation was the method used to research the performance of four main systems of amterial control. The methods compared were 1) Basestock system.2) Order Point System 3) Periodic review. 4) Just-in-Time.