Inventory management model in a butcher shop

Abstract

This article presents an analytic model for managing inventories in a butchers shops, considering the costs of obsolescence and stockout. In order to handle the cost of obsolescence we consider a variety of prices which were decreased while the product remains in storage. This aim of the model is to determine the optimal order quantity to maximize the utility in the point of sale of pork. We present the analysis of obsolescence and the possibility of supplying pork meat per cut type and also considering to buy the whole pork.