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ALY 6050 Northeastern University IMOD4 nventory Management Decision Model Project

 

In this project, you will design a prescriptive model for an inventory problem. Furthermore, you will obtain “optimal” solution(s) of your model both in the absence and the presence of uncertainty.

Problem:
Inventories represent a considerable investment for every organization; thus, it is important that they be managed well. Excess inventories can indicate poor financial and operational management. On the other hand, not having inventory when it is needed can also result in business failure. The two basic inventory decisions that managers face are how much to order or produce for additional inventory, and when to order or produce it to minimize total inventory cost, which consists of the cost of holding inventory and the cost of ordering it from the supplier.

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