Ram Maheshwari Logo Image
Bharath Kumar

Inventory Optimization

Developed an AMPL model to optimize inventory orders considering ordering, purchasing, holding costs, lead time, and safety stock.

Project Image

Project Overview

Coffee Express is looking to compete with another cafe that recently opened near them and is eating into their profits and are looking for ways to improve their profitability to keep up with the market. They are open to exploring latest methods to improve their processes.

We’ve been asked to propose a solution that can determine the order quantity for each period that can meet customer demand for coffee while minimizing the total cost. The dataset for all the transactions for 1 month have been provided to us.

Topics Covered

AMPL
Inventory Optimization
Ordering and holding cost
Safety stock
Optimum order quantity
Minimum total cost