Published date: Mar 01 2018

Journal Title: KnE Life Sciences

Issue title: The 3rd International Conference on Agro-Industry 2016 “Competitive & Sustainable Agro-Industry" (3rd ICoA 2016)

Pages: 82-88

DOI: 10.18502/kls.v4i2.1659

Kanokwan Singhakanokwan.singha@gmail.comSchool of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University,Pathum Thani 12121

Jirachai BuddhakulsomsiriSchool of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University,Pathum Thani 12121

Parthana ParthanadeeDepartment of Agro-Industrial Technology, Faculty of Agro-Industry, Kasetsart University, Bangkok 10900

This paper involves determining an optimal cycle service level for continuously stocked items that explicitly considers storage space capacity. Inventory management is under a continuous review policy. The total inventory management cost consisting of ordering cost, inventory holding cost, shortage cost, and over-capacity cost. Shortage items are assumed to be backlogged. A numerical example is provided to demonstrate the method.

Keywords: Continuous Review; Cycle Service Level; Storage Space Capacity; Over-Capacity Cost

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