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A Taguchi approached comparative study on inventory cost optimization considering shortage and backlogging cost for perishable products.

Zahid Hasan, Ishmam Hassan, Sajjad Hossain, Sadman Adil, Fuad Ahmed

Abstract


In supply chain, the main motive of inventory is to maximize the profit without interrupting the consumer’s satisfaction level. An established industry always avidly tries to find a way to reduce their cost and maximize their profit. In this research two total cost equations have been analyzed and optimized. One is considering shortage cost and another one is backlogging cost. Here the most sensitive parameter for both equations is holding cost. Data was collected from a renowned company. L9 orthogonal array of Taguchi Analysis was applied on both equations to find out the optimum parameter of the total cost equation. After that, both equations were calculated using the optimum parameters and found that the total cost which considers shortage cost is comparatively more beneficial.

Cite as

Zahid Hasan, Ishmam Hassan, Sajjad Hossain, Sadman Adil, & Fuad Ahmed. (2021). A Taguchi Approached Comparative Study on Inventory Cost Optimization Considering Shortage and Backlogging Cost for Perishable Products. Journal of Advanced Research in Industrial Engineering, 3(1),1- 11.

http://doi.org/10.5281/zenodo.4738618


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