Improved inventory management policies for Exclusive Home Fashions

Abstract

The current inventory management system at Exclusive Home Fashions shows potential for improvements with the use of modern inventory control techniques. The aim of the project is to use a modern inventory modelling approach to determine an improved balance between under- and overstocking costs as well as shortage costs. This project focus a Probabilistic Inventory Modelling approach to estimate the economic order quantities, reorder points and safety stock levels. By balancing the economic order quantities, reorder points and safety stock levels to obtain an improved inventory management policy, Exclusive Home Fashions will not only benefit financially but also have better control over their inventory.