Manage warehousing goods and funds flows
Keywords:
inventory keeping cost, cost of orders, minimum costAbstract
The cost of inventory management depends mainly on two basic units, the cost of keeping inventory and the cost of orders, as these two units, one complements the other. To show the total cost of inventory through laws, the authors suggested many techniques for this purpose. The cost of this operation gradually decreases with the use of its materials. In this work, the authors proposed some techniques in order to obtain the minimum cost by dividing the agreed period in three percentages after it was divided into two periods, meaning that the percentage of the costs paid by the company in the first part, middle part, and in last part of the period in order to reduce the cost as much as possible through several equations. That is we try to reduce the number of times that the goods are ordered to the minimum by increasing the number of units of goods in one order and to know the total inventory costs.
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