Inventory Optimizer is a software solution developed as part of the ENM320 Production and Operations Planning II & BIM214 Computer Programming IV Term Project. The software determines the optimal lot size (Q) and reorder point (R) for a given data set, providing valuable insights for inventory management.
The software calculates and provides the following decision variables and performance measures:
- Optimal lot size and reorder point
- The number of iterations the software run to obtain the optimal lot size and reorder point
- The safety stock
- Average annual holding, setup and penalty costs
- Average time between the placement of orders
- The proportion of order cycles in which no stock out occurs
- The proportion of demands that are not met
To install the Inventory Optimizer, follow these steps:
git clone https://github.com/enharukalo/inventory-optimizer.git
cd inventory-optimizer
mvn clean installTo use the Inventory Optimizer, navigate to the target directory and run the jar file:
cd target
java -jar inventory-optimizer.jarTest the software with the following problem.
Harvey’s Specialty Shop sells a popular mustard. The mustard costs Harvey $20 a jar. Replenishment lead time is 4 months. Harvey uses a 25 percent annual interest rate and estimates the loss of goodwill cost as $20 per jar in case of stockout. Bookkeeping expenses for placing an order is $100. During the four-month replenishment period, Harvey estimates that he sells an average of 500 jars. and the standard deviation of demand is 100. Assume that demand is described by a normal distribution. How should Harvey control the replenishment of the mustard?
Contributions to the Inventory Optimizer are welcome.
This project is licensed under the terms of the MIT license. See the LICENSE file for details.