Implementation of Deterministic Inventory Models with Backorders and Lost Sales in a Retail Company

Abstract

A study is carried out on inventory planning and control for a retail company which sells electronics and computer parts. Deterministic inventory models are used with a consideration of backorders and lost sales. In stockout, some sales are completely backordered, some are completely lost, and some are partially backordered while the rest is lost. Each of these cases are analyzed separately with the aim of determining minimum cost order quantities.

Keywords

• Inventory,EOQ,Backorder,Lost sales,Partial backordering

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