MODIFIED FIXED ORDER INVENTORY PLANNING AND CONTROL SYSTEM, AT THE KNOWN SERVICE LEVEL FOR THE PRODUCTS WHOSE INVENTORY DEVELOP INSTANTLY

The modified fixed order inventory planning and control system, at the known service level for the products whose inventory increase instantly developed by the authors is the modified version of the existing model, which accommodated all of the conflicting cost parameters like, purchase cost, order and shipping cost, inventory holding cost, stock checking cost, loss due to shortage, loss due to shelf life of the product, and discounted prices. The system gives the most optimum values of minimum inventory level, maximum inventory level and the order quantity under prevailing conditions. It accommodates normal and abnormal variations in market demand by changing the order time. However the system has the inherited demerits, of variations in maximum inventory developed at the time of delivery received, applicable only when stock checking cost is very low and no cost justification for selection of service level is required.