Deterministic Model of Inventory Control System

Julian G. GeorgeB1476, MBA-A

Deterministic Model Mathematical model in which outcomes are precisely determined without any room for random variation. In such models, a given input will always produce the same output.

Inventory Control SystemAn inventory control system is a process for managing and locating objects or materials. In common usage, the term may also refer to just the software components.

MODELS OF INVENTORY CONTROL

The ABC Classification: The ABC classification system is to grouping items according to annual sales volume, in an attempt to identify the small number of items that will account for most of the sales volume and that are the most important ones to control for effective inventory management.

Reorder Point: The inventory level R in which an order is placed where R=D*L, D=demand (day,week,etc), and L=lead time.

Safety Stock: Remaining inventory between the times that an order is placed and when new stock is received. If there are not enough inventories then a shortage may occur

MODERN INVENTORY CONTROL SYSTEMS

Modern inventory control systems often rely upon Barcodes and radio-frequency identification (RFID) tags to provide automatic identification of inventory objects.

Inventory objects could include any kind of physical asset like merchandise, consumables, fixed assets, library books, or capital equipment.

To record an inventory transaction, the system uses a barcode scanner or RFID reader to automatically identify the inventory object, and then collects additional information from the operators

RFID Tag

New Trend

The new trend in inventory management is to label inventory and assets with QR Code, and use smartphones to keep track of inventory count and movement. These new systems are especially useful for field service operations, where an employee needs to record inventory transaction or look up inventory stock in the field, away from the computers and hand-held scanners

These could also be your Inventory !