| dc.description.abstract | Inventory has a very important function for companies. The companies store variety of goods such as raw materials, goods for industrial processes, and other goods. The storages are required to keep the goods fulfill and buyers demand in a quick time. This paper discussed a deterministic inventory model. If the amount goods in the inventory is less than the buyers’ demand, then there is shortage of inventory. This would delay the demand for goods from the buyer to be fulfilled and the managers of the company would offer discounts to consumers for such a delay. By the delay time of payment, the company will know when the inventory ending time and reorder time so the total inventory cost would be minimized. The optimum ordering policy and the offered discount for the optimum shortage of inventory can be used to determine the minimum total inventory cost. | en |
