Inventory models and their selection parameters: a critical review

The role of purchase personnel is to select most appropriate ordering policy to optimise inventory cost. In this paper, we review the literature in the field of inventory, inventory control and its management with special reference to ordering policy selection methods. The literature review reveals that a large number of ordering policies have been proposed but the policies available cannot be used with high confidence as they use a limited number of selection parameters. We have gone through extensive study of available inventory literature. Classification of inventory selection parameters consists of 38 parameters divided into three levels has been proposed. The inferences from the literature have been drawn and it has been concluded that a comprehensive methodology is needed for optimal selection of ordering policy considering all relevant selection parameters and their relative weightage.

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