Adaptive inventory control system for material items with continuous non-stationary demand

Abstract

Abstract This paper describes an algorithm of dynamic inventory control system for large numbers of material items with continuous non-stationary demand. It uses principles of pull inventory control systems, statistical inventory analysis and joint replenishment inventory systems. This algorithm was processed in software module (VBA for Excel) and applied in practice. The target of described algorithm is to keep an optimum inventory level and optimum customer service level in terms of inventory control of items with non-stationary demand.