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What is Optimal Inventory Management Strategies about?

1. Central Electric (CE) currently has 4 regional warehouses in Europe to be close to customers, but this led to an inventory crisis. 2. CE is considering consolidating the warehouses into a single master warehouse in Austria. 3. Each of the 4 current warehouses has average daily demand of 800 units. With a 250 day year, annual demand per warehouse is 800 * 250 = 200,000 units. 4. CE incurs a holding cost of 20% per unit per year and $150 ordering cost for each warehouse order.

Author

Harriz Zr

Language

EN