Date of Award
Master of Science (MS)
The problem of inventory control and management has plagued business since its inception. It has not been until recently, however, that business has begun to deal with the problem on a scientific basis. The expansion of the firm into a large industrial complex has brought about the recognition of the need for better inventory control. This paper studies the basic mathematical models that have been developed for use in management and control of inventories. The study deals primarily with the economic order quantity and economic order point determination.
Various cost inputs and methods of determining and estimating them are discussed. The basic ordering quantity and ordering point models are developed as well as deviations from the basic models that one might encounter in the business situation.
Although differential calculus is used in this paper, a slight knowledge of it is all that is necessary for understanding the basic presentation. A knowledge of analytic geometry may also prove helpful.
Lardy, Dennis, "Inventory Analysis: Economic Order Point and Order Quantity" (1971). Theses and Dissertations. 5111.