Why Inventory Control? Control of inventory, which typically represents 45% to 90% of all expenses for business, is needed to ensure that the business has the right goods on hand to avoid stock-outs, to prevent shrinkage (spoilage/theft), and to provide proper accounting. Many businesses have too much of their limited resource, capital, tied up in their major asset, inventory. Worse, they may have their capital tied up in the wrong kind of inventory. Inventory may be old, worn out, shopworn, obsolete, or the wrong sizes or colors, or there may be an imbalance among different product lines that reduces the customer appeal of the total operation. Inventory control systems range from eyeball systems to reserve stock systems to perpetual computer-run…show more content… It is used extensively to analyze production and service processes exhibiting random variability in market demand (arrival times) and service times. It also provides the technique for maximizing capacity to meet the demand so that waiting time is reduced drastically.
Queueing theory deals with one of the most unpleasant experiences of life, waiting. Queueing is quite common in many fields, for example, in telephone exchange, in a supermarket, at a petrol station, at computer systems.
The first problem of queueing theory was raised by calls and Erlang was the first who treated congestion problems in the beginning of 20th century
Queuing theory can be broadly classified into : Infinite source queuing system and Finite source queuing system
Queuing theory/models that can help restaurants…show more content… Some restaurants initially provide more waiting chairs than they actually need to put them in the safe side, and reducing the chairs as the time goes on safe space. However, waiting chairs alone would not solve a problem when customers withdraw and go to the competitor’s door; the service time may need to be improved. This shows a need of a numerical model for the restaurant management to understand the situation
that enterprise keeps too large inventory stocks. Hence, this method can be used in cases of large quantities of low-value or class C materials and materials being processed relatively equally