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Deterministic Inventory Model Assignment Help

Deterministic Inventory Model based on the assumption that all parameters and variable associated with an inventory are known or can be computed with certainty, and that the replenishment lead time is constant and independent of the demand.

DETERMINISTIC INVENTORY MODELS

Model 1: Uniform Demand Rate, Infinite Production Rate

This is one of the oldest developments in material management. Ford Harris developed it in 1915 and later R.H. Wilson in 1943, popularized it among researchers and practitioners.

 
Assumptions of the Model

 1. Demand for the inventory is deterministic, i.e., it is known with certainty.
 
 2. Demand rate is constant and known beforehand.
 
 3. All orders are placed in single lot.
 
 4. No stock-out shortages or back orders are allowed.
 
 5. No quantity discount is allowed. Thus, purchase cost per unit is fixed.
 
 6. Lead time is constant and it is independent of demand.
 
 7. Inventory is controlled from one point of the system i.e., in a stockroom or in a warehouse.

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