Implementation
In this chapter, we will provide a full explanation of the development in an inventory
system for managing fast-moving service parts items. The development of the system
utilizes the data covering the operation during the years 2004 and 2005. The resulting
system is validated by comparing the solutions generated by the system against the
actual operation experienced in the year 2006. The results of the system validation
will be presented in Chapter 5.
The development applies a number of theoretical frameworks and can be completed
through four main tasks; item classification, demand forecasting, inventory control
and ordering policy.