Some applications of stochastic models for inventory control

Abstract

There are many branches of Operations Research and Inventory Management or control is an important branch of the same, keeping a stock of goods, new materials, manpower etc is necessary to meet the fluctuating demand for the same. But the optimal stock size of very important because it is cost effect. There are many real life situations in which the inventory may be necessary. Hence depending upon the problems that arise in real life, suitable mathematical models are developed using mathematics, statistics and stochastic process. This thesis is devoted to the development of some inventory models. In Chapter I, a brief introduction has given. In Chapter II the review of research work done in the past is furnished. In Chapter III, the optimal solution for reserve inventory between two machines in series in derived. In Chapter IV, the optimal supply size when the demand follows a distribution that in truncated both on left and right. In Chapter V the optimal inventory size is determined with interarrival times between demands and random variables and when the demands are also random variables. In Chapter VI the determination of optimal inventory of semi finished products at two stages namely between machines M1 and M2 and similarly between machines M2 and M3 is derived. In Chapter VII a brief summary of the results and conclusions are given.