Question

Is there an inventory balance constraint set in the juice logistics medel? if so, what is it describing?

Answer 1

Yes. There is an inventory management constraint set in juice logistics model.

In many supply chain, production planning and distribution planning are treated separately. But these are mutually integrated activities which must be works together. The proposed model of supply chain management is a good thing which consist of both production and distribution activities. It provides the idea that single perishable goods cannot be stored more than a predetermined period. For eliminating this kind of risk we use inventory management constraints set.

            Inventory management constraints set is the type of activity which is mainly connected with production variable and sales variable or distribution variable. As the name indicates, it is typically a balanced activity. The organization is ensures that the quantity going in to a production plant equals to the quantity going out.

That means, the total production plus the inventory level from the previous period, equals the amount of sales plus how much you leave in the inventory.

Production + Inventory [inventory of the previous period] = Sales + Inventory

In this constraint we are balancing the present production and previous period’s inventory level with present sales and inventory. This is called balanced inventory constraints set. In other words, we are balancing the item which what goes in to the plant with what goes out. The items are inventory and products.