Inventory Management of Resources with Discounts in a Manufacturing Industry (Case Study of a Bottling Company)

Authors

  • Oluleye A.E Department of Industrial & Production Engineering, University of Ibadan, Ibadan
  • Oladokun V.O Department of Industrial & Production Engineering, University of Ibadan, Ibadan
  • Anifanu S.O Department of Industrial Chemistry, Bowen University, Iwo

Keywords:

Demand and Sales, Optimization, Price, Production, Quantity Discount

Abstract

This article is primarily concerned with the analysis of inventory control of items with price break in companies with particular reference to the Store, Purchasing and Production departments of the Nigerian Bottling Company (NBC). Inventory constitutes the most significant part of current assets of larger majority of Nigerian manufacturing industries. Inventory management has become highly developed to meet the rising challenges in most corporate entities and this is in response to the fact that inventory is an asset of distinct feature. Because of the relative largeness of inventories maintained by most firms, a considerable sum of an organization’s fund is being committed to them. The main objective of this study is the application of quantity discount model as an existing tool of optimization in inventory management. The answer to the fundamental question of how best an organization which handles inventory can be efficiently run is provided for in the analysis and findings of the study.

References

. Adeyeye , “Production-Inventory Systems”, Unpublished Dissertation, Department of Industrial Engineering, University of Ibadan, 2011; 17-19.

. Barman, S. and R.J. Tersine , “Economic purchasing strategies for temporary price discounts”, European. Journal of Operation Research, 1995(80); 328-342

. Brent D. Williams, Travis Tokar, "A review of inventory management research in major logistics journals: Themes and future directions", International Journal of Logistics Management, 2008(19); 212-232.

. Crowther, J.F, “Rationale for quantity discounts”, Harvard Business Review, 1964(42); 121-127.

. Gorham, T, “Determining Economic Purchase quantities for parts with price breaks”, Production Inventory Management, 1970(11); 36-42.

. Goyal, S. K. and O.K. Gupta, “A simple approach to the discount purchase problem”, Journal Operation Research Society, 1990(41); 1169-1170.

. Goyal, S.K, “EOQ policy during special discount periods for dynamic inventory problems under certainty”, European Centre of Public Enterprises, 1990(20); 101 104.

. Goyal, S.K.; F.J. Arcelus and G. Srinivasan, “One time only incentives and inventory policies”, European Journal Operation Research, 1991(54); 1-6.

. Grant, M. R., “EOQ and price break analysis in a JIT environment”, Production Inventory Management, 1993(34); 64-69.

. Green, J.H., “A Modern Approach to Engineering Maintenance”, Production and Inventory Control Handbook, 1987(10); 108-123.

. Kotler, P.K, “A review of inventory management research”. Production and Operations Management, 2002(21); 135-202.

. Wee, H.M. and J. Yu, “A deteriorating inventory with temporary price discount, International Journal of Production Economics, 1997(53); 81-90.

. Weng, Z.K, “Modeling quantity discounts under general price sensitive demand functions: optimal policies and relationships”, European Journal of Opearation Research, 1995(86); 300-314

. William, J. Stevenson (1988): “A Modern Approach to Engineering Maintenance”, Production and Operations Management, 1988(10); 108-123.

Downloads

Published

2020-02-18

How to Cite

A.E, O. ., V.O, O. ., & S.O, A. . (2020). Inventory Management of Resources with Discounts in a Manufacturing Industry (Case Study of a Bottling Company). American Scientific Research Journal for Engineering, Technology, and Sciences, 64(1), 119–132. Retrieved from https://asrjetsjournal.org/index.php/American_Scientific_Journal/article/view/4810

Issue

Vol. 64 No. 1 (2020)

Section

Articles

License

Authors who submit papers with this journal agree to the following terms.