Date of Defense

4-22-1991

Department

Management

First Advisor

Robert Landeros, Management

Second Advisor

Carol Stamm, Management

Third Advisor

Katherine Karl, Management

Abstract

This report will link two key business concepts together. It will first examine the characteristics of different inventory replenishment systems used by purchasing managers. Second, it will bring the marketing phenomenon of the product life cycle into the picture. The varying demand patterns found in a typical product life cycle curve will become test data for a simulation exercise to determine which of four ordering models yield the lowest combination of holding and ordering costs. The costs related to holding finished good inventories account for a large portion of a firm's total cost structure (Adam and Ebert, 1989). To stay competitive, a firm cannot allow its inventory to become greater than the demand for that good, nor can it afford to sacrifice customer service simply to save some dollars in inventory holding. The savings from reduced inventory are small when compared to the cost of lost sales and dissatisfied customers (Plossl, 1985).

Access Setting

Honors Thesis-Open Access

Download

Share

COinS