Abstract

COMPARING THE SENSITIVITY OF QUANTITY BASED AND USEFUL LIFETIME BASED FIXED LIFETIME INVENTORY MODELS TO CHANGES IN COSTS.

Izevbizua O and Apanapudor J

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Abstract. The decision to order new items in the fixed lifetime inventory system depend on either the quantity of items on hand; that is when inventory drops to the reorder point or on the number of useful lifetime remaining on the items. In this work, we compare the sensitivityof Chiu?s model where the decision to reorder new items is based on the quantity of items on hand with Izevbizua and Omosigho?s model where the decision to reorder new items depends on the number of useful lifetime remaining on the items on hand. Key words: fixed lifetime, quantity based model, useful lifetime based model, reorder, ordering policy.

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