Authorised by Academic Registrar, April 1996
Objectives On the completion of this subject students will be able to develop techniques to model a range of inventory situations; solve common deterministic and stochastic single product inventory models; use dynamic programming to solve multi-period deterministic and stochastic inventory models; solve constrained multi-product inventory models; understand and apply the concepts of decision theory.
Synopsis The subject takes as its starting point inventory theory, but involves a number of techniques of more general use in operations research. Decision criteria; the elements of decision theory. Economic order quantity models: simple, production lot, back order models, stochastic EOQ models. Single period inventory models. Multi-period inventory models, applications of stochastic dynamic programming. Multi-product inventory models; constraints and their costs. Replacement models. Allocation of resources.
Assessment Examinations (1.5 hours): 90% + Tests and/or assignments: 10%