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Dynamics of Finished Goods Inventory Control Framework: A Deterministic Request in Product Appropriation

Author

Listed:
  • Adedugba Adebayo

    (Caleb University)

  • Inegbedion Daniel

    (Caleb University)

  • Oreagba Oluwakemi

    (Lead City University)

Abstract

A stock control bottleneck in a pharmaceutical organization in Lagos State, Nigeria, is presented in the study. The organizational inventory chain in the pharmaceutical store network is examined. To conceptualize the situation within the model, the study proposed a two-situation deterministic stock model that is based on pragmatic presumptions and imperatives within the inventory network. The formulation considers a single drug item, construct lead time, and deterministic request. The deterministic request is addressed as a sales projection for the item. Two mathematical functions are characterized as the optimization of the distinction between arranged mean stock level, acknowledged stock, and the minimization of stock-out circumstances. This was based on a fostered methodology for deciding reorder echelon to accomplish the proposed mathematical formulation that is dependent on request ≤ inventory and request > inventory for 1 year. It is on this premise that the mathematical model of request and inventory is utilized as a mechanism of control to achieve optimality.

Suggested Citation

  • Adedugba Adebayo & Inegbedion Daniel & Oreagba Oluwakemi, 2024. "Dynamics of Finished Goods Inventory Control Framework: A Deterministic Request in Product Appropriation," SN Operations Research Forum, Springer, vol. 5(2), pages 1-18, June.
    • Handle: RePEc:spr:snopef:v:5:y:2024:i:2:d:10.1007_s43069-024-00311-1
    DOI: 10.1007/s43069-024-00311-1
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    References listed on IDEAS

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    1. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.
    2. Abdalrahman Algendi & Sebastián Urrutia & Lars Magnus Hvattum, 2023. "Optimizing production levels in maritime inventory routing with load-dependent speed optimization," Flexible Services and Manufacturing Journal, Springer, vol. 35(1), pages 111-141, March.
    3. Mária Stopková & Ondrej Stopka & Vladimír Ľupták, 2019. "Inventory Model Design by Implementing New Parameters into the Deterministic Model Objective Function to Streamline Effectiveness Indicators of the Inventory Management," Sustainability, MDPI, vol. 11(15), pages 1-15, August.
    4. Sasan Harifi & Madjid Khalilian & Javad Mohammadzadeh & Sadoullah Ebrahimnejad, 2021. "Optimization in solving inventory control problem using nature inspired Emperor Penguins Colony algorithm," Journal of Intelligent Manufacturing, Springer, vol. 32(5), pages 1361-1375, June.
    5. Yingying Zhang & Yi Chai & Le Ma, 2021. "Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains," Sustainability, MDPI, vol. 13(11), pages 1-15, June.
    6. Wakhid Ahmad Jauhari & I Nyoman Pujawan & Mokh Suef, 2023. "Sustainable inventory management with hybrid production system and investment to reduce defects," Annals of Operations Research, Springer, vol. 324(1), pages 543-572, May.
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