Optimality in Inventory and Machinery Replacement Models

Author(s): Rowland J. O. Ekeocha

In my first article, optimization of industrial system was achieved by the use of the simultaneous equation method while stochastic approximation was employed in obtaining optimality of the queuing system. In this paper, differential calculus and repeated trials were employed to located the optimum lot size of the inventory model while the optimization, dynamic programming and the economic lot size methods were required to obtain optimality of the replacement/rehabilitation model. If the first article created an impression that optimality is limited to some systems like the industrial and queuing systems the extension of optimality to the inventory and replacement/rehabilitation model shows that optimality is achievable in every system/model provided appropriate optimization technique is employed.

Optimality, Optimization Technique, Models

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