An Application in excel to find out safety inventory with stochastic porcess in the ceramic firms

In this study, it has been examined optimum safety inventory that ceramic firms have to holdby using stochastic models application in Excel.In the first section of the study, It has been emphasized the concept of model in numericmethods. It has been explained stochastic and deterministic models extensively.In the second section of the study, it has been given information about ceramic sector andconsideration of this sector in Turkey. It has been explained not only employment and addedvalue created by ceramic sector, but olsa statistical information about those. It has been giveninformation about Yurtbay Ceramic Factory that had been applied the model. It has beenexplained its productive capacity and market share in Turkey and all over the world.In the application section, it has been replaced production data of Yurtbay Ceramic Factory inthe model. Result that had been found out has been compared with the Yurtbay inventorycost. Production disruption subject to demand had been increased inventory cost. Withoutproduction interruption, inventory that Yurtbay have to hold in order to maintain minimuminventory cost had been calculated and presented to the factory management.