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This article focuses on the development of the classical theory of inventory (EGO) on the basis of the division of the inventory
stocks into fast-moving items and slow-moving items with regard
to the security reserve. The basic hypotheses of EGO models have been revised in conjunction with the necessary modifications
for the development of this theory. Thus the amount of the orders executed in this system has been adjusted on the basis of the
maximum and minimum amount of economic orders. While
attempt has been made to keep the service supply and security stock at a high level in the suggested model, the costs of ordering (based on the items classification) have been reduced and the
amount of orders is facilitated on the basis of the real needs.
M. R. Mehregan, Ph.D.
Editor