Analysis of inventory management models of raw materials in non-deterministic situations for a pharmaceutical company.

Abstract

TCG plans to reduce the warehouse space from 3500 to 1500 pallet spaces. A

previous study focuses on the raw materials procurement and ordering

methods. It classified raw materials into A, B or C in descending order of

importance and recommended a just-in-time approach, a continuous review

model and a periodic review model respectively. However, the models are

limited by assumptions that demands are random and normally distributed,

and replenishment lead times are fixed and deterministic. The aim of this

thesis is to improve the models by taking into account the actual nondeterministic

situations.