Effect on Probabilistic Continuous EOQ Review Model after Applying Third Party Logistics

Authors:

Shirajul Islam Ukil,Mollah Mesbahuddin Ahmed,Shirin Sultana,Md. Sharif Uddin,

DOI NO:

https://doi.org/10.26782/jmcms.2015.01.00003

Keywords:

Inventory,Probabilistic Continuous EconomicOrder Quantity(EOQ),Review Model,fixed cost,variable cost,holding cost,Third Party Logistics,

Abstract

This article explains how a company manages itsbusiness to gain minimuminventorycostandreaches itsbusiness success by usingThird Party Logistics.Applying Third Party Logisticsthe company may put its eyes on its production process and marketing smoothly.Thereby, the inventory cost might be reduced substantially.By applying this technique, mainlyit can reduce the clerical cost, security staff cost and depreciation costamong the variouscosts mentioned in the paper subsequently.And to get the optimum level the party usesits fewtools likedatabase software. Italso expressesamathematical framework to understand the performance of the company and put the argumentsthat inventory cost minimization methodis an approach that helps itto be competitive and success fulin the business arena.Toestablish a new modelin this paper,Probabilistic Continuous Economic Order Quantity(EOQ) Model isused as a baseline.

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Author(s) : Shirajul Islam Ukil, Mollah Mesbahuddin Ahmed, Shirin Sultana, and Md. Sharif Uddin View Download