PROMOTING ACCESS TO AFRICAN RESEARCH

Journal of the Nigerian Association of Mathematical Physics

Log in or Register to get access to full text downloads.

Remember me or Register



DOWNLOAD FULL TEXT Open Access  DOWNLOAD FULL TEXT Subscription or Fee Access

A Cost Control Policy for Material Requirements Planning and Procurements.

KJ Bassey, FB Adebola, CN Okoro

Abstract


It is sometimes difficult to predict that a particular material will be out of stock at a particular time. This uncertainty can be avoided by deriving a probability distribution of stock-out. Let us assume that the stock-out of material occur only at the end of a certain period, say t. This paper derives a probability distribution theory of stock-out at time t which minimizes the total cost involved for the planning and procurements of material within a production cycle. A control policy to sustain the system when the inventory cost is a function of time with a known depreciation value is presented.

Keywords: MRPP, Cost Control, Inventory, Probability, Policy




AJOL African Journals Online