Inventory management model in a butcher shop

Abstract

This article presents an analytic model for managing inventories in a butchersshops, considering the costs of obsolescence and stockout. In order tohandle the cost of obsolescence we consider a variety of prices which weredecreased while the product remains in storage. This aim of the model is todetermine the optimal order quantity to maximize the utility in the pointof sale of pork. We present the analysis of obsolescence and the possibilityof supplying pork meat per cut type and also considering to buy the wholepork.