Statistical and Wilson EOQ models conjunction for order quantity optimization

Abstract

The optimal order supply for each product type on the criteria minimum of unsold goods storage costs or maximum of sale profit or minimum amount of unit storage can be defined having the following consumption parameters: overall demand statistics, net cost plus additional storage costs per unit of product, delivery and placing goods costs, stock capacity, the amount of stock remains, deficit matrix for each commodity type and sales profit per product type. Moreover, consideration of warehouse capacity allows determining the product that ensures maximum of sale profit. The method had been tested on real business data.