A Procedure for Scheduling Inventory of an Industry by Merging Forecasting and Linear Programming

Authors

  • AKM Selim Reza Department of Mathematics, Khulna University of Engineering & Technology, Khulna, Bangladesh
  • Sayma Suraiya Department of General Educational Development, Daffodil International University, Dhaka, Bangladesh
  • M Babul Hasan Department of Mathematics, University of Dhaka, Dhaka-1000, Bangladesh

DOI:

https://doi.org/10.3329/dujs.v68i1.54598

Keywords:

Forecast; Inventory management; Linear programming; Error measurement.

Abstract

In this paper, we develop a mathematical model combining forecasting and linear programming for a business organization of Bangladesh to calculate optimum order quantity and inventory cost. We test the model using raw data of the demand for the raw materials and spare inventory for the industry and find out minimum total inventory cost along with ordering cost and inventory holding cost. The developed model make a match between the forecasted demand of raw materials and spare inventory and the minimum total cost of inventory. Finally comparing minimum cost, we observe that our estimated appropriate forecasting method gives optimal inventory cost.

Dhaka Univ. J. Sci. 68(1): 65-70, 2020 (January)

Downloads

Download data is not yet available.
Abstract
36
PDF
36

Downloads

Published

2020-01-30

How to Cite

Reza, A. S., Suraiya, S., & Hasan, M. B. (2020). A Procedure for Scheduling Inventory of an Industry by Merging Forecasting and Linear Programming. Dhaka University Journal of Science, 68(1), 65–70. https://doi.org/10.3329/dujs.v68i1.54598

Issue

Vol. 68 No. 1 (2020)

Section

Articles