Supply Chain Analysis Tools


 Miles Barnett
 2 years ago
 Views:
Transcription
1 Supply Chain Analysis Tools MS&E 262 Supply Chain Management April 14, 2004 Inventory/Service Tradeoff Curve Motivation High Inventory Low Poor Service Good Analytical tools help lower the curve! 1
2 Outline EOQ Newsvendor Lot Size Reorder (Q,R) Model Periodic Review (T,S) Model Random Lead Times Risk Pooling/Consolidation Example Multiechelon Example Other Improvements Economic Order Quantity Model How much to order/produce? Fixed order cost of $ K Inventory holding cost of $ h = $ Ic Shortages prohibited Deterministic (constant) demand rate per year, D Inventory Level Slope = D Q T (T = Q/D) Time, t 2
3 EOQ Model  Derivation Annual Holding + Setup Cost G(Q) = cd + KD/Q + IcQ/2 Purchasing Setup Holding Total = G(Q)cD Holding = IcQ/2 Q* Q * = 2KD Ic Setup = KD/Q Q EOQ Model Sensitivities/Shortcomings rule 40 % error in an input parameter results in 20 % error in Q The result is a 2 % increase in the costs, G(Q) Cost function is relatively insensitive to errors in Q Shortcomings of EOQ Model? Zero lead time (easily extended to fixed lead time) Infinite production rate (finite production rate, P, if P > D) No shortages allowed (easily extendable) Constant, deterministic demand rate 3
4 Newsvendor Model How much to order/produce? Underage cost/unit c u Overage cost/unit c o Likelihood f(d) Mean Demand, d Newsvendor Model (cont.) F( Q * ) = c u cu + c o Shortcomings of Newsvendor Model? No consideration of positive lead times One shot model (can be extended to multiple periods) No setup cost for placing orders included 4
5 Lot Size Reorder Point (Q,R) Model We need to decide two things: How much to order each time we place an order (Q)? At which reorder point (R) do we place an order? Inventory Position R s Q τ Safety Stock Time τ= Lead Time (Q,R) Model Notations Average demand rate/year Setup cost Variable cost Holding cost Order quantity Reorder point Lead time Safety stock λ K c h=ic Q R τ s 5
6 (Q,R) Model Unit Shortage Cost p The expected total annual cost is Kλ Q λ G ( Q, R) = + Ic + R λτ + p ( x R) f ( x) dx Q 2 Q R Setup Holding Shortage n Defining n(r) = E [# of units short in a cycle] we obtain 2λ( K + pn( R)) Q = Ic QIc F( R) = 1 pλ (Q,R) Model Unit Shortage Cost p (cont.) For normally distributed demand, define where z = (Rµ L )/σ L. Hence n(r) = σ L L(z) Use the approximate solution: Q = EOQ Obtain z from tables for L(z) R = µ L + zσ L L ( z) = ( t z) φ( t) dt µ L : mean lead time demand; σ L : standard deviation of lead time demand z 6
7 (Q,R) Model Service Level Approaches Type 1: α = Prob(no stockout in lead time) Type 2: β = Proportion of demand met from onhand stock Recall n(r) = E[# of units short in cycle] n( R) σ LL( z) = = 1 β Q Q Bad Better (1 β ) Q L( z) = σ L Periodic Review (T,S) Model Review every T units Order up to S units at every review Response Time = T+τ Inventory Lead Time S Τ τ Time τ 7
8 (T,S) Model (cont.) Where T = EOQ/λ S = µ τ+t τ+t + z σ τ+t τ+t µ τ+t = mean demand over τ+t periods σ τ+t = standard deviation of demand over τ+t periods z see (Q,R) model Hence Safety Stock = z σ τ+t Lead Time Demand Variability Expectation of Sum = Sum of Expectations General Variance Formula (Lead time = τ periods, demand in period i = d i ) σ 2 d LT = τ i= 1 σ 2 d i + 2 i< j COV ( d i, d j ), where d LT = τ i= 1 d i Variance of Sum = Sum of Variances (for independent variables) Example: Lead time demand * Mean µ L = τ µ Variance σ L2 = τ σ 2 * assuming independence between periods 8
9 Random Lead Times If lead time is random, with mean τ and variance s 2 And demand in time t has mean µt and variance σ 2 t Then the demand during (random) lead time has * Mean µ L = τµ Variance σ L2 = µ 2 s 2 +τσ 2 * Assuming orders do not cross and successive lead times are independent Lead Time Example Supplier s Production Time = 3 weeks Transportation Time from Supplier = 4 weeks End Product Demand, per week ~ N(µ,σ 2 ) Case 1: No variability in transportation time ~ N(4,0) weeks τ = 7 weeks µ L = 7µ, σ L2 = 7σ 2 Case 2: Transportation Time from Supplier ~ N(4,0.81) weeks τ = 7 weeks µ L = 7µ, σ L2 = µ 2 (0.81) + 7σ 2 9
10 Uniform vs. Nonuniform Service Levels Risk Pooling/Consolidation MultiEchelon Analysis Postponement Leadtime Reduction Review Period Reduction Variable Leadtime Risk Pooling/Consolidation What is meant by Risk Pooling? Example Laser Printer Supply Chain 10
11 Laser Printer: Finished Goods Logistics Penang, Malaysia Long Beach CA, USA Memphis TN, USA Represents a DC location for distributor D1 UPS Ground Map for Memphis, TN 11
12 Laser Printer s Distributor Network Assume the following distributor network: 5 Independent Distributors (D1, D2, D3, D4, D5) Each distributor operates 8 DCs across the US Who are the distributors customers? Who owns the printer inventory? Relevant inventory metrics for a DC? Laser Printer s Distributor Network Opportunity for Risk Pooling For any particular distributor? For any particular location (e.g., Memphis, TN)? For the original equipment mfg (OEM)? 12
13 Assume that: Laser Printer s Distributor Network Demands at the multiple DCs are statistically independent. The means and standard deviations of demand for the multiple product DCs are identical. The leadtimes for the multiple DCs are identical/constant. The review periods at the DCs are identical. The safety factors for the DCs are identical. All DCs have the same inventory value. Laser Printer s Distributor Network Let: σ i = standard deviation of demand per period at DC i; L i = lead time for DC i; T i = review period for DC i; z i = safety factor for DC i; n = number of DCs in a region (e.g., DCs in Memphis, TN). 13
14 Laser Printer s Distributor Network Safety Stock at DC i = z i a i T i + L i n Total System Safety Stock = > i=1 z i a i T i + L i Safety Stock, Unpooled Total = nza T + L Safety Stock, Pooled Total = za Pooled T + L a Pooled = > i a i2 = a n Laser Printer s Distributor Network Reduction Effect through Pooling: SafetyStock,Unpooled Total?SafetyStock,Pooled Total SafetyStock,Unpooled Total 1? za Pooled T + L nza T + L = 1? a n na = 1? 1 n Reduction Effect in Memphis (n = 5): 55.3% Recall, the Distributors operate 8 separate DCs across the US 14
15 Laser Printer s Distributor Network What Happened? Benefit to the OEM in a particular region? Cost Savings attributed to Risk Pooling? Benefits, other than logistics? MultiEchelon Supply Chain Analysis Concept Interactions of various levels in supply chain Levels are referred to as echelons Example Beer Game 15
16 MultiEchelon Beer Game O I O I O I ORDER FLOW BEER! Retailer Wholesaler Distributor Factory D D D D D D D D Inventory Inventory Inventory Inventory PRODUCT FLOW MultiEchelon Beer Game What Happened During Play? Communication? Lead Time? Holding vs. Backlogging Costs? Time Horizon/Duration? 16
17 MultiEchelon Beer Game Applying Inventory Theory: Holding vs. Backlogging Costs? (p = $1/wk, h = $0.50/wk) Lead Time Effects? Information Sharing? What policy could you play? Postponement/Delayed Differentiation Concept Delay product differentiation until as late as possible in the production process Examples Advantages? Tradeoffs? 17
18 Lead Time Reduction Advantages? Tradeoffs? How to do analysis? Review Period Reduction Advantages? Tradeoffs? How to do analysis? 18
19 Summary Avoid black box approach Understand underlying assumptions Perform sensitivity analysis on different parameters At worst, simulate the system! Analytical tools can help significantly improve supply chain performance! 19
Course Supply Chain Management: Inventory Management. Inventories cost money: Reasons for inventory. Types of inventory
Inventories cost money: Inventories are to be avoided at all cost? Course Supply Chain Management: Or Inventory Management Inventories can be useful? Chapter 10 Marjan van den Akker What are reasons for
More informationTema 4: Supply Chain Management
Tema 4: Supply Chain Management Logistics 1 Supplier Manufacturer Warehouse Retailer Customer Tema basado en: Supply Chain Management: Strategy, Planning, and Operations, Sunil Copra and Peter Meindl (Editors).
More informationD Lab: Supply Chains
D Lab: Supply Chains Inventory Management Class outline: Roles of inventory Inventory related costs Types of inventory models Focus on EOQ model today (Newsvender model next class) Stephen C. Graves 2013
More informationAgenda. TPPE37 Manufacturing Control. A typical production process. The Planning Hierarchy. Primary material flow
TPPE37 Manufacturing Control Agenda Lecture 2 Inventory Management 1. Inventory System Defined 2. Inventory Costs 3. Inventory classification 4. Economic order quantity model 5. Newsboy problem 6. Reorder
More informationUd Understanding di inventory issues
Lecture 10: Inventory Management Ud Understanding di inventory issues Definition of inventory Types of inventory Functions of inventory Costs of holding inventory Introduction to inventory management Economic
More informationInventory Management and Risk Pooling. Xiaohong Pang Automation Department Shanghai Jiaotong University
Inventory Management and Risk Pooling Xiaohong Pang Automation Department Shanghai Jiaotong University Key Insights from this Model The optimal order quantity is not necessarily equal to average forecast
More informationMGT 3110  Exam 2 Formulas. Item $ Usage % of $ usage Cumulative % of $ Cumulative % of no. of items Class
Chapter 12 Inventory Management MGT 3110  Exam 2 Formulas ABC Classification rule: Class A: ~15% of items, 7080% annual $ usage Class B: ~30% of items, 1525% annual $ usage Class C: ~55% of items, 5%
More informationKey Concepts: Week 8 Lesson 1: Inventory Models for Multiple Items & Locations
Key Concepts: Week 8 Lesson 1: Inventory Models for Multiple Items & Locations Learning Objectives Understand how to use different methods to aggregate SKUs for common inventory policies Understand how
More informationInventory Management. Topics on inventory management
Inventory Management ISyE 3104 Fall 2013 Topics on inventory management Objective An introduction to the fundamental concepts, tradeoffs and methods in inventory management Topics Deterministic inventory
More informationInventory Control. Contents 1. FRAMEWORK OF PLANNING DECISIONS...1
Inventory Control When to order? How many to order? Contents 1. FRAMEWORK OF PLANNING DECISIONS...1 2. INVENTORY CONTROL...2 2.1 CONTROL SYSTEMS...3 2.2 PARAMETERS...4 2.3 COSTS...5 3. INVENTORY CONTROL:
More information講 師 : 周 世 玉 Shihyu Chou
講 師 : 周 世 玉 Shihyu Chou Logistics involves the following activities: sourcing and purchasing inputs, managing inventory, maintaining warehouses, and arranging transportation and delivery. There are three
More informationLot size/reorder level (Q,R) Models
Lot size/eorder level, Models Esma Gel, Pınar Keskinocak, 0 ISYE 0 Fall 0 ecap: Basic EO Inventory It d =d T d T T T T Lead time time Place an order when the inventory level is. The order arrives after
More informationAgenda. Real System, Transactional IT, Analytic IT. What s the Supply Chain. Levels of Decision Making. Supply Chain Optimization
Agenda Supply Chain Optimization KUBO Mikio Definition of the Supply Chain (SC) and Logistics Decision Levels of the SC Classification of Basic Models in the SC Logistics Network Design Production Planning
More informationSupply Chain Management: Inventory Management
Supply Chain Management: Inventory Management Donglei Du Faculty of Business Administration, University of New Brunswick, NB Canada Fredericton E3B 9Y2 (ddu@umbc.edu) Du (UNB) SCM 1 / 83 Table of contents
More informationA Programme Implementation of Several Inventory Control Algorithms
BULGARIAN ACADEMY OF SCIENCES CYBERNETICS AND INFORMATION TECHNOLOGIES Volume, No Sofia 20 A Programme Implementation of Several Inventory Control Algorithms Vladimir Monov, Tasho Tashev Institute of Information
More informationInventory Management and Risk Pooling
CHAPTER 3 Inventory Management and Risk Pooling CASE JAM Electronics: Service Level Crisis JAM Electronics is a Korean manufacturer of products such as industrial relays. The company has five Far Eastern
More informationChapter 9. Inventory management
Chapter 9 Inventory management Slack et al s model of operations management Direct Design Operations Management Deliver Develop Supply network management Capacity management Inventory management Planning
More informationRisk Pooling Strategies to Reduce and Hedge Uncertainty
Risk Pooling Strategies to Reduce and Hedge Uncertainty Location Pooling Product Pooling Lead time Pooling Capacity Pooling Risk Pooling 風 險 共 擔 : 整 合 供 應 以 減 少 因 需 求 波 動 而 缺 貨 的 風 險 D ~N(, ) D +D ~N(
More informationPackage SCperf. February 19, 2015
Package SCperf February 19, 2015 Type Package Title Supply Chain Perform Version 1.0 Date 20120122 Author Marlene Silva Marchena Maintainer The package implements different inventory models, the bullwhip
More informationSupply Chain Inventory Management Chapter 9. Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall 0901
Supply Chain Inventory Management Chapter 9 0901 What is a Inventory Management? Inventory Management The planning and controlling of inventories in order to meet the competitive priorities of the organization.
More informationInventory Management: Fundamental Concepts & EOQ. Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006
Inventory Management: Fundamental Concepts & EOQ Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006 Agenda Wrap up of Demand Forecasting Fundamentals of Inventory Management Economic Order Quantity
More information1 The EOQ and Extensions
IEOR4000: Production Management Lecture 2 Professor Guillermo Gallego September 9, 2004 Lecture Plan 1. The EOQ and Extensions 2. MultiItem EOQ Model 1 The EOQ and Extensions This section is devoted to
More informationINTEGRATED OPTIMIZATION OF SAFETY STOCK
INTEGRATED OPTIMIZATION OF SAFETY STOCK AND TRANSPORTATION CAPACITY Horst Tempelmeier Department of Production Management University of Cologne AlbertusMagnusPlatz D50932 Koeln, Germany http://www.spw.unikoeln.de/
More information2.1 Model Development: Economic Order Quantity (EOQ) Model
_ EOQ Model The first model we will present is called the economic order quantity (EOQ) model. This model is studied first owing to its simplicity. Simplicity and restrictive modeling assumptions usually
More informationAgenda. Managing Uncertainty in the Supply Chain. The Economic Order Quantity. Classic inventory theory
Agenda Managing Uncertainty in the Supply Chain TIØ485 Produkjons og nettverksøkonomi Lecture 3 Classic Inventory models Economic Order Quantity (aka Economic Lot Size) The (s,s) Inventory Policy Managing
More informationSmall Lot Production. Chapter 5
Small Lot Production Chapter 5 1 Lot Size Basics Intuition leads many to believe we should manufacture products in large lots.  Save on setup time  Save on production costs Costs associated with Lots
More informationMATERIALS MANAGEMENT. Module 9 July 22, 2014
MATERIALS MANAGEMENT Module 9 July 22, 2014 Inventories and their Management Inventories =? New Car Inventory Sitting in Parking Lots Types of Inventory 1. Materials A. Raw material B. WIP C. Finished
More informationSingle item inventory control under periodic review and a minimum order quantity
Single item inventory control under periodic review and a minimum order quantity G. P. Kiesmüller, A.G. de Kok, S. Dabia Faculty of Technology Management, Technische Universiteit Eindhoven, P.O. Box 513,
More informationWhat is the Bullwhip Effect caused by?
Supply Chain World Europe 2002, 2830 October, 2002, Amsterdam What is the Bullwhip Effect caused by? Study based on the Beer Distribution Game online Jörg Nienhaus (email: Joerg.Nienhaus@ethz.ch) Swiss
More informationModeling Stochastic Inventory Policy with Simulation
Modeling Stochastic Inventory Policy with Simulation 1 Modeling Stochastic Inventory Policy with Simulation János BENKŐ Department of Material Handling and Logistics, Institute of Engineering Management
More informationInventory Control Subject to Known Demand
Production and Operation Managements Inventory Control Subject to Known Demand Prof. JIANG Zhibin Department of Industrial Engineering & Management Shanghai Jiao Tong University Contents Introduction Types
More informationHow human behaviour amplifies the bullwhip effect a study based on the beer distribution game online
How human behaviour amplifies the bullwhip effect a study based on the beer distribution game online Joerg Nienhaus *, Arne Ziegenbein *, Christoph Duijts + * Centre for Enterprise Sciences (BWI), Swiss
More informationEVERYTHING YOU NEED TO KNOW ABOUT INVENTORY
EVERYTHING YOU NEED TO KNOW ABOUT INVENTORY Introduction Inventory is considered the necessary evil of the supply chain. In fact, there has been a whole movement; lean manufacturing that has tried to reduce
More informationInventory management
Inventory management Giovanni Righini Università degli Studi di Milano Logistics Terminology and classification Inventory systems In the supply chain there are several points where stocks are kept for
More informationAnalysis of Various Forecasting Approaches for Linear Supply Chains based on Different Demand Data Transformations
Institute of Information Systems University of Bern Working Paper No 196 source: https://doi.org/10.7892/boris.58047 downloaded: 16.11.2015 Analysis of Various Forecasting Approaches for Linear Supply
More informationSupply Chain Management: Risk pooling
Supply Chain Management: Risk pooling Donglei Du (ddu@unb.edu) Faculty of Business Administration, University of New Brunswick, NB Canada Fredericton E3B 9Y2 Donglei Du (UNB) SCM 1 / 24 Table of contents
More informationA Synchronized Supply Chain for Reducing Decoupling Stock
A Synchronized Supply Chain for Reducing Decoupling Stock Jian Wang Shanghai University, China, jwang@t.shu.edu.cn Hiroaki Matsukawa Keio University, Japan, matsukawa@ae.keio.ac.jp Shane J. Schvaneveldt
More informationSPARE PARTS INVENTORY SYSTEMS UNDER AN INCREASING FAILURE RATE DEMAND INTERVAL DISTRIBUTION
SPARE PARS INVENORY SYSEMS UNDER AN INCREASING FAILURE RAE DEMAND INERVAL DISRIBUION Safa Saidane 1, M. Zied Babai 2, M. Salah Aguir 3, Ouajdi Korbaa 4 1 National School of Computer Sciences (unisia),
More informationIntroduction. How Important Is Inventory Control?
PUBLICATION 420148 Lean Inventory Management in the Wood Products Industry: Examples and Applications Henry QuesadaPineda, Assistant Professor, Wood Science and Forest Products, and Business and Manufacturing
More informationInventory: Independent Demand Systems
Inventory: Independent Demand Systems Inventory is used in most manufacturing, service, wholesale, and retail activities and because it can enhance profitability and competitiveness. It is widely discussed
More informationMaterial Requirements Planning (MRP)
Material Requirements Planning (MRP) Unlike many other approaches and techniques, material requirements planning works which is its best recommendation. Joseph Orlicky, 1974 1 History Begun around 1960
More informationAPICS Dictionary Inventory Terms
Inputs Transformation Process Throughput Managing Operations: A Focus on Excellence Cox, Blackstone, and Schleier, 2003 Chapter 15 The Tools of Finished Goods Inventory Management: Traditional Methods
More informationCase Study on Forecasting, BullWhip Effect in A Supply Chain
International Journal of ISSN 09742107 Systems and Technologies Vol.4, No.1, pp 8393 IJST KLEF 2010 Case Study on Forecasting, BullWhip Effect in A Supply Chain T.V.S. Raghavendra 1, Prof. A. Rama Krishna
More informationChapter 7. Production, Capacity and Material Planning
Chapter 7 Production, Capacity and Material Planning Production, Capacity and Material Planning Production plan quantities of final product, subassemblies, parts needed at distinct points in time To generate
More informationMathematical Modeling of Inventory Control Systems with Lateral Transshipments
Mathematical Modeling of Inventory Control Systems with Lateral Transshipments Lina Johansson Master Thesis Department of Industrial Management and Logistics Division of Production Management Lund university,
More informationEconomic Production Quantity (EPQ) Model with Time Dependent Demand and Reduction Delivery Policy
ISSN NO:: 348 537X Economic Production Quantity (EPQ) Model with Time Dependent Demand and Reduction Delivery Policy Dr. Neeraj Agarwal Professor & Head, Department of Hotel Management, Graphic Era University,
More informationHow to Overcome 3 Common Inventory Replenishmemt Challenges
How to Overcome 3 Common Inventory Replenishmemt Challenges This white paper explains the 4 different types of replenishment models used by wholesalers and distributors to avoid making costly inventory
More informationChapter 7. 7.1 Introduction. Distribution Strategies. Traditional Warehousing. 7.3. Intermediate Inventory Storage Point Strategies
7.1 Introduction McGrawHill/Irwin Chapter 7 Distribution Strategies Copyright 2008 by The McGrawHill Companies, Inc. All rights reserved. Focus on the distribution function. Various possible distribution
More information10.2 Series and Convergence
10.2 Series and Convergence Write sums using sigma notation Find the partial sums of series and determine convergence or divergence of infinite series Find the N th partial sums of geometric series and
More informationHYPOTHESIS TESTING: POWER OF THE TEST
HYPOTHESIS TESTING: POWER OF THE TEST The first 6 steps of the 9step test of hypothesis are called "the test". These steps are not dependent on the observed data values. When planning a research project,
More informationEconomic Order Quantity
The Decisions to be Made Economic Order Quantity One of the most frequent decisions faced by operations managers is how much or how many of something to make or buy in order to satisfy external or internal
More informationOptimum decisionmaking process for an Economic Order Quantity (EOQ) model with budget and floor space constraints
American Journal of Service Science and Management 2014; 1(5): 5357 Published online January 20, 2015 (http://www.openscienceonline.com/journal/ajssm) Optimum decisionmaking process for an Economic Order
More informationINDUSTRIAL STATISTICS AND OPERATIONAL MANAGEMENT. 7. Inventory Management
INDUSTRIAL STATISTICS AND OPERATIONAL MANAGEMENT 7. Inventory Management Dr. Ravi Mahendra Gor Associate Dean ICFAI Business School ICFAI HOuse, Nr. GNFC INFO Tower S. G. Road Bodakdev Ahmedabad380054
More informationMULTIECHELON INVENTORY MANAGEMENT. Stijn Rutjes & Martijn Cornelissen
MULTIECHELON INVENTORY MANAGEMENT Stijn Rutjes & Martijn Cornelissen 1 dinsdag 15 november 2011 AGENDA Inventory Management MultiEchelon environment Problem definition Risk pooling Safety stock determination
More informationSTOCHASTIC PERISHABLE INVENTORY CONTROL SYSTEMS IN SUPPLY CHAIN WITH PARTIAL BACKORDERS
Int. J. of Mathematical Sciences and Applications, Vol. 2, No. 2, May 212 Copyright Mind Reader Publications www.journalshub.com STOCHASTIC PERISHABLE INVENTORY CONTROL SYSTEMS IN SUPPLY CHAIN WITH PARTIAL
More informationInventory Management I: Economic Order Quantity (EOQ)
Inventory Management I: Economic Order Quantity (EOQ) 15.734 Intro to OM, Recitation 3 Annie Chen June 5, 2014 Questions? Announcements Questions? Great job everyone on the PATA case! Process Improvement
More informationForecasting in supply chains
1 Forecasting in supply chains Role of demand forecasting Effective transportation system or supply chain design is predicated on the availability of accurate inputs to the modeling process. One of the
More informationINVENTORY MANAGEMENT. 1. Raw Materials (including component parts) 2. WorkInProcess 3. Maintenance/Repair/Operating Supply (MRO) 4.
INVENTORY MANAGEMENT Inventory is a stock of materials and products used to facilitate production or to satisfy customer demand. Types of inventory include: 1. Raw Materials (including component parts)
More informationChapter 14 Inventory Management
Chapter 14 Inventory Management Overview Nature of Inventories Opposing Views of Inventories Fixed Order Quantity Systems Fixed Order Period Systems Other Inventory Models Some Realities of Inventory Planning
More informationInventory Management  A Teaching Note
Inventory Management  A Teaching Note Sundaravalli Narayanaswami W.P. No.20140901 September 2014 INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD380 015 INDIA Inventory Management  A Teaching Note Sundaravalli
More informationOperations Management
111 Inventory Management 112 Inventory Management Operations Management William J. Stevenson CHAPTER 11 Inventory Management 8 th edition McGrawHill/Irwin Operations Management, Eighth Edition, by William
More informationInventory Management. Material Requirements Planning. Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006
Inventory Management Material Requirements Planning Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006 Assumptions: Basic MRP Model Demand Constant vs Variable Known vs Random Continuous vs
More information2.6. Probability. In general the probability density of a random variable satisfies two conditions:
2.6. PROBABILITY 66 2.6. Probability 2.6.. Continuous Random Variables. A random variable a realvalued function defined on some set of possible outcomes of a random experiment; e.g. the number of points
More informationThe Bullwhip Effect in Supply Chains. Leslie Gardner, Ph.D. University of Indianapolis School of Business Institute for Emerging Careers
The Bullwhip Effect in Supply Chains Leslie Gardner, Ph.D. University of Indianapolis School of Business Institute for Emerging Careers 1 Institute for Emerging Careers Funded by Lilly Endowment Research
More informationInventory Models for Special Cases: A & C Items and Challenges
CTL.SC1x Supply Chain & Logistics Fundamentals Inventory Models for Special Cases: A & C Items and Challenges MIT Center for Transportation & Logistics Inventory Management by Segment A Items B Items
More informationWeb based Multi Product Inventory Optimization using Genetic Algorithm
Web based Multi Product Inventory Optimization using Genetic Algorithm Priya P Research Scholar, Dept of computer science, Bharathiar University, Coimbatore Dr.K.Iyakutti Senior Professor, Madurai Kamarajar
More informationChapter 6. Inventory Control Models
Chapter 6 Inventory Control Models Learning Objectives After completing this chapter, students will be able to: 1. Understand the importance of inventory control and ABC analysis. 2. Use the economic order
More informationMAINTAINED SYSTEMS. Harry G. Kwatny. Department of Mechanical Engineering & Mechanics Drexel University ENGINEERING RELIABILITY INTRODUCTION
MAINTAINED SYSTEMS Harry G. Kwatny Department of Mechanical Engineering & Mechanics Drexel University OUTLINE MAINTE MAINTE MAINTAINED UNITS Maintenance can be employed in two different manners: Preventive
More informationA Combined InventoryLocation Model for Distribution Network Design
A Combined InventoryLocation Model for Distribution Network Design Tammy Jo Hodgdon Research Thesis submitted to the Faculty of Virginia Polytechnic Institute and State University in partial fulfillment
More informationThe aim behind the calculations of EOQ and ROL is to weigh up these, and other advantages and disadvantages and to find a suitable compromise level.
Stock control by Tony Mock 12 Feb 2004 Stock control features in the syllabuses of several ACCA examination papers, including CAT Papers 4 and 10, and Professional Scheme Papers 1.2 and 2.4. The areas
More informationOperations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras
Operations and Supply Chain Management Prof. G. Srinivasan Department of Management Studies Indian Institute of Technology, Madras Lecture  36 Location Problems In this lecture, we continue the discussion
More informationConfidence Intervals for the Difference Between Two Means
Chapter 47 Confidence Intervals for the Difference Between Two Means Introduction This procedure calculates the sample size necessary to achieve a specified distance from the difference in sample means
More informationInventory Control Models
Chapter 12 Inventory Control Models Learning Objectives After completing this chapter, students will be able to: 1. Understand the importance of inventory control. 2. Use inventory control models to determine
More informationMultiEchelon Inventory Optimization
MultiEchelon Inventory Optimization By Calvin B. Lee, Ph.D. Vice President and Chief Scientist, Evant Inc. MultiEchelon Inventory Optimization By Calvin B. Lee, Ph.D. Vice President and Chief Scientist,
More informationStochastic Modelling and Forecasting
Stochastic Modelling and Forecasting Department of Statistics and Modelling Science University of Strathclyde Glasgow, G1 1XH RSE/NNSFC Workshop on Management Science and Engineering and Public Policy
More informationContracts. David SimchiLevi. Professor of Engineering Systems
Introduction to Stochastic Inventory Models and Supply Contracts David SimchiLevi Professor of Engineering Systems Massachusetts Institute of Technology Introduction Outline of the Presentation The Effect
More informationAn Overview on Theory of Inventory
An Overview on Theory of Inventory Sandipan Karmakar Dept of Production and Industrial Engineering NIT Jamshedpur October 8, 015 1 Introduction Inventory is a stock of items kept by an organization to
More informationAn Entropic Order Quantity (EnOQ) Model. with Post Deterioration Cash Discounts
Int. J. Contemp. Math. Sciences, Vol. 6,, no. 9, 93939 An Entropic Order Quantity (EnOQ Model with Post Deterioration Cash Discounts M. Pattnaik Dept. of Business Administration, Utkal University Bhubaneswar754,
More informationInventory Management & Optimization in Practice
Inventory Management & Optimization in Practice Lecture 16 ESD.260 Logistics Systems Fall 2006 Edgar E. Blanco, Ph.D. Research Associate MIT Center for Transportation & Logistics 1 Session goals The challenges
More informationInventory Theory 935
19 Inventory Theory Sorry, we re out of that item. How often have you heard that during shopping trips? In many of these cases, what you have encountered are stores that aren t doing a very good job of
More informationReorder level = demand during lead time = lead time x demand per unit time ROL = LT x D
Reorder Level Additional assumption: Lead time is known and constant No need to carrying stock from one cycle to the next So each order should be scheduled to arrive as existing stock runs out Reorder
More informationMath 461 Fall 2006 Test 2 Solutions
Math 461 Fall 2006 Test 2 Solutions Total points: 100. Do all questions. Explain all answers. No notes, books, or electronic devices. 1. [105+5 points] Assume X Exponential(λ). Justify the following two
More information93.4 Likelihood ratio test. NeymanPearson lemma
93.4 Likelihood ratio test NeymanPearson lemma 91 Hypothesis Testing 91.1 Statistical Hypotheses Statistical hypothesis testing and confidence interval estimation of parameters are the fundamental
More informationChapter 3: DISCRETE RANDOM VARIABLES AND PROBABILITY DISTRIBUTIONS
Chapter 3: DISCRETE RANDOM VARIABLES AND PROBABILITY DISTRIBUTIONS Part 4: Geometric Distribution Negative Binomial Distribution Hypergeometric Distribution Sections 37, 38 The remaining discrete random
More informationStochastic Models for Inventory Management at Service Facilities
Stochastic Models for Inventory Management at Service Facilities O. Berman, E. Kim Presented by F. Zoghalchi University of Toronto Rotman School of Management Dec, 2012 Agenda 1 Problem description Deterministic
More informationInventory Models (Stock Control)
Inventor Models (Stock Control) Reference books: Anderson, Sweene and Williams An Introduction to Management Science, quantitative approaches to decision making 7 th edition Hamd A Taha, Operations Research,
More informationInventory Theory. 25.1 Inventory Models. Chapter 25 Page 1
Chapter 25 Page 1 Inventory Theory Inventories are materials stored, waiting for processing, or experiencing processing. They are ubiquitous throughout all sectors of the economy. Observation of almost
More informationProject procurement and disposal decisions: An inventory management model
Int. J. Production Economics 71 (2001) 467}472 Project procurement and disposal decisions: An inventory management model Keith A. Willoughby* Department of Management, Bucknell University, Lewisburg, PA
More informationThe Newsvendor Model
The Newsvendor Model Exerpted form The Operations Quadrangle: Business Process Fundamentals Dan Adelman Dawn BarnesSchuster Don Eisenstein The University of Chicago Graduate School of Business Version
More informationInventory Management. MultiItems and MultiEchelon. Chris Caplice ESD.260/15.770/1.260 Logistics Systems Nov 2006
Inventory Management MultiItems and MultiEchelon Chris Caplice ESD.260/15.770/1.260 Logistics Systems Nov 2006 Advanced Topics So far, we have studied singleitem single location inventory policies.
More informationRiskPooling Effects of Emergency Shipping in a TwoEchelon Distribution System
Seoul Journal of Business Volume 8, Number I (June 2002) RiskPooling Effects of Emergency Shipping in a TwoEchelon Distribution System Sangwook Park* College of Business Administration Seoul National
More informationLogistics Management Customer Service. Özgür Kabak, Ph.D.
Logistics Management Customer Service Özgür Kabak, Ph.D. Customer Service Defined Customer service is generally presumed to be a means by which companies attempt to differentiate their product, keep customers
More informationGESTION DE LA PRODUCTION ET DES OPERATIONS PICASSO EXERCICE INTEGRE
ECAP 21 / PROD2100 GESTION DE LA PRODUCTION ET DES OPERATIONS PICASSO EXERCICE INTEGRE 20042005 Prof : Pierre Semal : semal@poms.ucl.ac.be Assistants : Eléonore de le Court : delecourt@poms.ucl.ac.be
More informationThe Next Generation of Inventory Optimization has Arrived
The Next Generation of Inventory Optimization has Arrived Cuttingedge demand classification technology integrated with network optimization and simulation enables cost reduction and increased inventory
More informationA numerical study of expressions for fill rate for single stage inventory system with periodic review.
University of Louisville ThinkIR: The University of Louisville's Institutional Repository Electronic Theses and Dissertations 82013 A numerical study of expressions for fill rate for single stage inventory
More informationApplying Actual Usage Inventory Management Best Practice in a Health Care Supply Chain
Applying Actual Usage Inventory Management Best Practice in a Health Care Supply Chain Vijith Varghese #1, Manuel Rossetti #2, Edward Pohl #3, Server Apras *4, Douglas Marek #5 # Department of Industrial
More informationEffect of Forecasting on Bullwhip Effect in Supply Chain Management
Effect of Forecasting on Bullwhip Effect in Supply Chain Management Saroj Kumar Patel and Priyanka Jena Mechanical Engineering Department, National Institute of Technology, Rourkela, Odisha769008, India
More informationEXPONENTIAL DEPENDENT DEMAND RATE ECONOMIC PRODUCTION QUANTITY (EPQ) MODEL WITH FOR REDUCTION DELIVERY POLICY
SRJHSEL/BIMONHLY/ NEERAJ AGARWAL (2482415) EXPONENIAL DEPENDEN DEMAND RAE ECONOMIC PRODUCION QUANIY (EPQ) MODEL WIH FOR REDUCION DELIVERY POLICY Neeraj Agarwal Department of Hotel Management, Graphic
More informationPerishable Items in MultiLevel Inventory Systems
Perishable Items in MultiLevel Inventory Systems Department of Industrial Management and Logistics, LTH Master Thesis presented by Yann Bouchery Double Degree Student Ecole Centrale de Lille (France)
More informationFIXED CHARGE UNBALANCED TRANSPORTATION PROBLEM IN INVENTORY POOLING WITH MULTIPLE RETAILERS
FIXED CHARGE UNBALANCED TRANSPORTATION PROBLEM IN INVENTORY POOLING WITH MULTIPLE RETAILERS Ramidayu Yousuk Faculty of Engineering, Kasetsart University, Bangkok, Thailand ramidayu.y@ku.ac.th Huynh Trung
More information