An ordering policy for dried fish inventory

Emma G. Perez

Date

3-1989

Degree

Bachelor of Science in Applied Mathematics

College

College of Arts and Sciences (CAS)

Adviser/Committee Chair

Myrna C. Belarmino

Abstract

This study dealt with the determination of an optimal ordering policy for dried fish inventory systems following a periodic review of the inventory, uses last-in-first-out issuing policy and no backlogging. The need for this study is brought about by the occurrence of high spoilage of dried fish specifically during summer. The total expected net return equation was formulated to be a function of the ordering and purchasing cost, holding cost, outdating cost, shortage cost and the gross returns per unit. This Markovian dried fish inventory problem was solved through the use of dynamic programming. A computer program was made to solve the problem in fast speed and was applied to products Sap-sap B and Tab-M using the 1986-1987 data. Data were divided into five seasons and applied to the computer program independently. Results obtained were conservative due to the big difference of the outdating cost per unit and the shortage cost per unit. Other factors are the probability of earlier outdating of the product and the probability distribution of sales at the lower region of the mean. An improvement on the model used was recommended and also, explorations on the use of other methods was highly encouraged.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

Thesis

Document Type

Thesis

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