Study on Raw Materials Inventory Model of Machinery Manufacturing Enterprises

This paper, the raw material inventory policy of Machinery manufacturing enterprises (MME)are discused, The inventory theory should be applied in the stock control of raw material(MME). The structure and composing of (R, S) stochastic model (MME) is introduced, the (R, S) stochastic model and its mathematics model is put forward. Which is established according to the principle of operational research, For the (R, S) policy, the order level S is set to protect against a shortage in the time interval R + L. The cost (per unit time) of operation of the inventory system expressed in terms of R and S is Composed of Inventory cost, Replenishment cost and Shortage cost, Evaluation of the shortage cost depends on the assumption of the costs experienced in the event of a stockout. a Application example is given which discusses the details of application in the stock control of MME.