Optimal Ordering Policy for Inventory System

Optimal Ordering Policy for Inventory System

in Demand Declining Market

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"Inventory" for many small business owners is one of the more visible and tangible aspects of doing business. Raw materials, goods in process and finished goods all represent various forms of inventory. Each type represents money tied up until the inventory leaves the company as purchased products. Likewise, merchandise stocks in a retail store contribute to profits only when their sale puts money into the cash register. In a literal sense, inventory refers to the stocks of anything necessary to do business. These stocks represent a large portion of the business investment and must be well man...