Abstract:
Company ABC, is a retail company that buys and delivers its products to retailers. Deliveries are triggered by orders from retailers. Daily retailers‟ require stock from Company ABC and Company ABC has to make sure that it always has stock available for all their customers.
A thorough research was conducted to best identify the safety stocks that needs to be kept in the warehouse to ensure that Company ABC always has stock available for its customers. This project identified a system that will determine the re-ordering points, economic order quantity and the safety stock levels of the KVI (Known Value Items) to minimise the total inventory costs.
