An Investigation of the Inventory Policies of a Small Production Firm.

A study was conducted of the inventory operations of a small production plant. Based on parameters established or estimated during the study, a simple inventory model which yields stock levels for the raw material inventory and production quantities for the manufacturing operation was developed. Price comparisons were made showing the recommended policies to be more economical than those policies used before the study was conducted. A search routine proffered by Buffa and Taubert was examined and shown not to be acceptable as a method of determining production quantities for the company investigated. Author