Inventory management on the basis of the Queuing theory

Abstract

Mathematical description of two models of inventory control task based on the queueing theory is presented. A model with continuous replenishment may find an effective application for finding optimum strategy of restocking in trade organizations when it is not profitable to order the goods in large lots, and piece replenishment with a wide range of goods is more profitable. Batch replenishment model is more suitable for a wide range of inventory problems that have to deal with group deliveries. The most important feature of the proposed model is the possibility of obtaining the optimal parameters of inventory control strategy with a known mathematical expectation of demand for goods.