Inventory Policy for Cross Selling Item

摘要

There exists a situation in a retail where the demand of one product generate the demand for other products or it is called as cross selling item. Therefore, in order to minimize total inventory cost, inventory policy needs to be planned according to that. When two products that are correlated are supplied from the same vendor, then the joint replenishment policy need to be applied. The research presented in this paper tries to model the inventory policy for cross selling item.