Journal of Product Design, Quality Engineering & Technology ISSN: 3139-2008 (Online)

Abstract

The Inventory proportionality is the goal of demand-driven inventory management. The primary optimal outcome is to have the same number of days worth of inventory on hand across all products so that the time of run out of all products would be simultaneous. The secondary goal of inventory proportionality is inventory minimization. By integrating accurate demand forecasting with inventory management, replenishment inventories can be scheduled to arrive just in time to replenish the product destined to runout first, while at the same time balancing out the inventory supply of all products to make their inventories more proportional, and thereby closer to achieving the primary goal. Accurate demand forecasting also allows the desired inventory proportions to be dynamic by determining expected sales out into the future; this allows for inventory to be in proportion to expected short-term sales or consumption rather than to past averages, a much more accurate and optimal outcome.

Keywords: Inventory System, Canteen