Track: Inventory Management
Abstract
The life cycle of electronic products is becoming shorter. Calculate the optimum quantity to buy and hold in inventory is a big challenge, must be incorporated the temporary variable into the mathematical model that describes the death of the product and therefore calculate the required inventory. Economic Order Quantity (EOQ) was used in this case study in coordination with the logistic function, originally applied to population growth, this is a convenient function for estimating economic batch versus time analogy. Thus, a nonlinear regression was used to estimate the parameters of a hybrid model, EOQ-curve S. Once applied this model, the total costs of inventories were reduced by about 200%, demonstrating the effectiveness achieved.