Probabilistic Algorithm for Determining Optimum Salt Inventories

Document Type

Paper

Publication Date

12-1-1996

Abstract

Mother Nature has shown her unfriendly face, causing so much frustration and damage through snowstorms. The purpose of this research project is to determine the optimal inventory of rock salt (required to melt snow) that Essex County should carry on a weekly basis during the winter months (November to April). The optimal inventory will be determined based on the inventory on hand at the beginning of the week and other factors. The optimal amount to be purchased during the week can be determined based on the expected demand for salt for the week. The expected demand will be determined using historical probability distribution of snowfalls in Essex County for each week.

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