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Journal articles on the topic 'Inventory carrying costs'
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1
Gaither, Norman, Donald R. Fraser, and William G. Mister. "Accounting for Inventory Carrying Costs." Journal of Cost Analysis 5, no. 1 (July 1987): 1–6. http://dx.doi.org/10.1080/08823871.1987.10462359.
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Bondy, Harry. "Inventory carrying costs in government." Canadian Public Administration/Administration publique du Canada 34, no. 3 (September 1991): 527–30. http://dx.doi.org/10.1111/j.1754-7121.1991.tb01481.x.
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Gurtu, Amulya. "Optimization of Inventory Holding Cost Due to Price, Weight, and Volume of Items." Journal of Risk and Financial Management 14, no. 2 (February 4, 2021): 65. http://dx.doi.org/10.3390/jrfm14020065.
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The inventory carrying cost has been assumed uniform for all products in an organization or a warehouse. This assumption is not valid for a diversified range of items in an organization or warehouse. This paper tested this hypothesis of variations in inventory holding costs in a warehouse in two industries based on the physical nature and the price of products. It is found that organizations with a wide variety of products need to calculate the inventory holding cost for each item (SKU) rather than using an average percentage cost of inventory. Inventory holding costs of items in two different organizations were calculated based on the various factors, including the actual cost of space due to the voluminous nature of the items with their existing inventory policies. A variation in inventory holding costs for each item was observed. The variation was small for an organization with homogeneous input costs, and it was large for a multi-product organization. The overall savings in the inventory holding cost due to adjusting the inventory policies through this methodology was found to be about 3%, which is significant for a big organization. This analysis will affect the decision the determining inventory carrying cost, inventory policies (e.g., stocking levels), and pricing policies (e.g., quantity discounts) for retail organizations.
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Pope, Jennifer A., and James A. Pope. "Plant supply logistics: balancing delivery and stockout costs." Journal of Transportation Management 17, no. 1 (April 1, 2006): 52–60. http://dx.doi.org/10.22237/jotm/1143849900.
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A manufacturer leases rail cars to transport raw material from the supplier to the factory. The manufacturer must balance the costs of leasing rail cars versus stockouts (leading to plant closings) and inventory carrying costs. Using a model of circular queues and a simulation, the cost implications of leasing different numbers of rail cars are analyzed. It is concluded that stockout costs exceed the cost of excess inventory and capacity in the logistics system.
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FAROOQUIE, PARVEEN, and M. NASIR KHAN. "RETURNING TO ROOTS FOR REDUCING INVENTORY COSTS IN SMEs: A CASE OF INDIAN LOCK INDUSTRY." Journal of Enterprising Culture 18, no. 03 (September 2010): 315–30. http://dx.doi.org/10.1142/s0218495810000562.
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Achieving uninterrupted production, increasing profitability and productivity, protection against stock-outs, and improving customer service levels have been the major benefits of holding inventory. Maintaining inventory levels beyond a certain limit is, however, an undesirable phenomenon. While practitioners and researchers are aiming at minimum possible cost of inventory, many small business owners in India still fail to appreciate fully the true costs of carrying inventory. In this context the present study examines a case of the lock manufacturing industry in the Aligarh district of the state Uttar Pradesh. The investigations reveal that lock manufacturing units, by-and-large, are either unaware of even the fundamental techniques of inventory management or do not practice them for one reason or the other. The case attempts to illustrate how SMEs can reduce their inventory costs, and hence improve profitability, through the application of basic models of inventory management.
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NACHIAPPAN, SP, N. JAWAHAR, S. CALWIN PARTHIBARAJ, and B. BRUCELEE. "PERFORMANCE ANALYSIS OF FORECAST DRIVEN VENDOR MANAGED INVENTORY SYSTEM." Journal of Advanced Manufacturing Systems 04, no. 02 (December 2005): 209–26. http://dx.doi.org/10.1142/s0219686705000618.
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Vendor Managed Inventory (VMI) is a centralized link between suppliers and customers that enables faster, less complex transactions without creating individual lines of communication for every business relationship. The current scenario necessitates the effective integration of forecasting with VMI to maintain its efficient inventory level with less safety stock. Concerning the above, this paper proposes a Forecast Driven Vendor Managed Inventory Model (FDVMI) in which a suitable forecasting model, which has minimum error and which satisfies Tracking Signal, is selected to predict the demand. The operational control and performance parameters are estimated for the partners under VMI mode of operation. The proposed model is analyzed with a case problem of M/s Nerolac stock point, Madurai with all performance parameters. The analysis reveals that the adaptation of FDVMI guarantees tangible benefits such as increase in buyer profit, vendor profit, decrease in sales price and contract price and intangible benefits such as reduced inventory, replenishments and stock outs. However, the validity of the results depends on the various factors such as sales-demand relationship, order and carrying costs of vendor and buyer in the Existing Operation (EO), combined order and carrying costs of vendor in VMI system and so on.
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Federgruen, Awi, and Min Wang. "A CONTINUOUS REVIEW MODEL WITH GENERAL SHELF AGE AND DELAY-DEPENDENT INVENTORY COSTS." Probability in the Engineering and Informational Sciences 29, no. 4 (October 2015): 507–25. http://dx.doi.org/10.1017/s0269964815000169.
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We analyze a continuous review inventory model with the marginal carrying cost of a unit of inventory given by an increasing function of its shelf age and the marginal delay cost of a backlogged demand unit by an increasing function of its delay duration. We show that, under a minor restriction, an (r, q)-policy is optimal when the demand process is a renewal process, and a state dependent (r, q)-policy is optimal when the demand is a Markov-modulated renewal process. We also derive various monotonicity properties for the optimal policy parameters r* and r* + q*.
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Mojaveri, Hamidreza Salmani, and Vahid Moghimi. "Determination of Economic Order Quantity in a fuzzy EOQ Model using of GMIR Deffuzification." Indonesian Journal of Science and Technology 2, no. 1 (April 1, 2017): 76. http://dx.doi.org/10.17509/ijost.v2i1.5990.
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Inappropriate inventory control policies and its incorrect implementation can cause improper operation and uncompetitive advantage of organization logistic operation in the market. Therefore, analysis inventory control policies are important to be understood, including carrying cost, ordering cost, warehouse renting cost, and buying cost. In this research, Economic Order Quantity (EOQ) problem in fuzzy condition is reviewed in two different situations. The first model concerned to costs (carrying cost, ordering cost, warehouse renting cost and buying cost), which is considered as triangular fuzzy numbers. The second model was in addition to inventory the cost system, in which annual demand is also reviewed as fuzzy numbers. In each model, graded mean integration representation (GMIR) deffuzification was used for parameters deffuzification. Then, the final objective from this analysis was to obtain economic quantity formula through derivation.
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Hipkin, I. B. "A situational approach to the application of the inventory control theory to maintenance spares control." South African Journal of Business Management 22, no. 4 (December 31, 1991): 101–6. http://dx.doi.org/10.4102/sajbm.v22i4.907.
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The management of maintenance spares has frequently been treated as part of the management of the total inventory in production-oriented organizations. In this article it is suggested that maintenance spares should be grouped into four categories: non-stock, usage stock, project stock and insurance stock. Rather than using a common inventory control approach to all spares, different techniques should be applied to each category. Developments in reliability-centred maintenance will result in less reliance on forecasting maintenance spares requirements, thereby permitting a higher service level without an increase in inventory carrying costs.
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Mitchell, Michael D., and Walter E. Beyeler. "Studying the Relationship between System-Level and Component-Level Resilience." Journal of Complex Systems 2015 (January 8, 2015): 1–9. http://dx.doi.org/10.1155/2015/875265.
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The capacity to maintain stability in a system relies on the components which make up the system. This study explores the relationship between component-level resilience and system-level resilience with the aim of identifying policies which foster system-level resilience in situations where existing incentives might undermine it. We use an abstract model of interacting specialized resource users and producers which can be parameterized to represent specific real systems. We want to understand how features, such as stockpiles, influence system versus component resilience. Systems are subject to perturbations of varying intensity and frequency. For our study, we create a simplified economy in which an inventory carrying cost is imposed to incentivize smaller inventories and examine how components with varying inventory levels compete in environments subject to periods of resource scarcity. The results show that policies requiring larger inventories foster higher component-level resilience but do not foster higher system-level resilience. Inventory carrying costs reduce production efficiency as inventory sizes increase. JIT inventory strategies improve production efficiency but do not afford any buffer against future uncertainty of resource availability.
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Alessandria, George, Joseph P. Kaboski, and Virgiliu Midrigan. "Inventories, Lumpy Trade, and Large Devaluations." American Economic Review 100, no. 5 (December 1, 2010): 2304–39. http://dx.doi.org/10.1257/aer.100.5.2304.
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We document that delivery lags and transaction-level economics of scale matter for international trade, leading importers to import infrequently and hold additional inventory. In a model with these frictions calibrated to empirical measures of inventory and trade lumpiness, these frictions have a large (20 percent) tariff equivalent, mostly due to inventory carrying costs. These frictions also alter the dynamics of imports and prices. Consistent with evidence from large devaluation episodes in six developing economies, following terms-of-trade and interest rate shocks, the model generates a short-term implosion of imports and a gradual increase in the retail price of imports. (JEL D92, F14, G31, L81, M11)
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Joglekar, Prafulla, Patrick Lee, and Alireza M. Farahani. "Continuously Increasing Price in an Inventory Cycle: An Optimal Strategy for E-Tailers." Journal of Applied Mathematics and Decision Sciences 2008 (May 25, 2008): 1–14. http://dx.doi.org/10.1155/2008/483267.
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Operations researchers have always assumed that when a product's unit cost is constant and its demand curve is known and stationary, a retailer of the product would find it optimal to replenish the inventory with a fixed quantity and to sell the product always at a fixed price. We present, with proof, a model that shows that, in such a case, an e-tailer is better off using a continuously increasing price strategy than using a fixed price strategy within each inventory cycle. Sensitivity analysis shows that this strategy is particularly profitable when demand is highly price sensitive and the inventory ordering and carrying costs are high.
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Somadi, Syah Rajendra Hari Septa, and Nila Dahlia Juita. "Penggunaan metode algoritma wagner within dalam upaya pengendalian persediaan scrap besi di PT XYZ." JURNAL NUSANTARA APLIKASI MANAJEMEN BISNIS 5, no. 1 (April 28, 2020): 56–73. http://dx.doi.org/10.29407/nusamba.v5i1.14111.
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The research objective is to determine the total size of the lot of iron scrap orders, and the total cost of the company's inventory before and after carrying out the method of controlling iron scrap inventory using the Wagner Within Algorithm method. Demand forecasting uses the Single Moving Averge, Weight Moving Average, and Exponential Smoothing methods. Based on the results of the study, the total lot size of iron scrap material orders is smaller than the size of previous lot orders without using the inventory control method, which is 15,362 tons per year. Total inventory of Rp. 105,076,125,840 and the total cost is more optimal when compared with the total cost of inventory with the company system that is Rp. 109,734,165,840 so that the company can save costs by Rp. 4,658,040,000.
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Zapata-Cortes, Julian Andres, Martín Dario Arango-Serna, and Conrado Augusto Serna-Uran. "Application of the joint replenishment problem in a collaborative Inventory approach to define resupply plans in urban goods distribution contexts." DYNA 85, no. 207 (October 1, 2018): 174–82. http://dx.doi.org/10.15446/dyna.v85n207.72546.
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This article presents an application of the joint replenishment problem (JRP) as the basis for proposing a collaborative inventory model with joint orders, in which multiple customers share the required information to define their supply plans. This information is consolidated by the supplier and it is responsible for carrying out the collaborative joint replenishment process. The application of the model allows generating a replenishment process that reduces costs compared to carrying out the individual plans for each customers and also generates a reduction in the number of trips required, which is a positive contribution to urban goods distribution processes.
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Liu, Gia-Shie, and Kuo-Ping Lin. "A decision support system of green inventory-routing problem." Industrial Management & Data Systems 119, no. 1 (February 4, 2019): 89–110. http://dx.doi.org/10.1108/imds-11-2017-0533.
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Purpose The purpose of this paper is to develop a decision support system to consider geographic information, logistics information and greenhouse gas (GHG) emission information to solve the proposed green inventory routing problem (GIRP) for a specific Taiwan publishing logistics firm. Design/methodology/approach A GIRP mathematical model is first constructed to help this specific publishing logistics firm to approximate to the optimal distribution system design. Next, two modified Heuristic-Tabu combination methods that combine savings approach, 2-opt and 1-1 λ-interchange heuristic approach with two modified Tabu search methods are developed to determine the optimum solution. Findings Several examples are given to illustrate the optimum total inventory routing cost, the optimum delivery routes, the economic order quantities, the optimum service levels, the reorder points, the optimum common review interval and the optimum maximum inventory levels of all convenience stores in these designed routes. Sensitivity analyses are conducted based on the parameters including truck loading capacity, inventory carrying cost percentages, unit shortage costs, unit ordering costs and unit transport costs to support optimal distribution system design regarding the total inventory routing cost and GHG emission level. Originality/value The most important finding is that GIRP model with reordering point inventory control policy should be applied for the first replenishment and delivery run and GIRP model with periodic review inventory control policy should be conducted for the remaining replenishment and delivery runs based on overall simulation results. The other very important finding concerning the global warming issue can help decision makers of GIRP distribution system to select the appropriate type of truck to deliver products to all retail stores located in the planned optimal delivery routes depending on GHG emission consumptions.
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Makarova, O. V. "Predictive method of inventory optimization in industrial manufacturer performance." E3S Web of Conferences 247 (2021): 01066. http://dx.doi.org/10.1051/e3sconf/202124701066.
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Strong collaboration in supply chain at B2B market may improve operational and financial performance of both suppliers and clients. Need for collaboration benefits realization is especially actual for supplying manufacturers with huge investments in inventory as well as high ordering and carrying costs. Traditional stock level optimization models rely on historic data which makes them inefficient when supply if influenced by changing customized demand of key B2B clients. Strong collaboration with key clients, synchronization of planning process through the whole supply chain up to the end user and a forward-looking demand adjustment (ΔD, %) to the forecasting model are suggested to improve efficiency of planning. The model is validated at the B2B industrial manufacturer with positive effect. Application of the demand adjustment reorients the whole inventory planning practices towards a proactive approach that lead to a higher operational and financial efficiency.
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Chanda, Udayan, and Alok Kumar. "Optimization of EOQ Model for New Products Under Multi-Stage Adoption Process." International Journal of Innovation and Technology Management 16, no. 02 (April 2019): 1950015. http://dx.doi.org/10.1142/s0219877019500159.
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The available literature on new product sales growth models mostly ignores two important aspects of technology diffusion: diffusion of awareness and the actual adoption. This characteristic of technology adoption is extremely important from inventory management perspective as buying decision is often influenced due to time lag between information propagation and actual adoptions. As high-technology market is extremely unpredictable, interactions between technological evolutions and customer feedback effects play an important role in technology diffusion. The demand models mostly considered in inventory literature to develop economic order quantity (EOQ) model ignore this important element of technology diffusion. In this paper, we proposed an EOQ model for high-technology products by incorporating customer feedback effects along with market heterogeneity to optimize the total inventory cost. The demand model considered in the paper follows lifecycle phenomenon and is sensitive to unit selling price. To remove any ambiguity pertaining to costs, fuzzy nature of ordering and inventory carrying cost is considered in the paper.
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Santi, Santi, A. I. Jaya, and A. Sahari. "OPTIMALISASI PERSEDIAAN BAHAN BAKAR MINYAK INDUSTRI (SOLAR) PADA PT. PRIMA SENTOSA ALAM LESTARI MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY (EOQ)." JURNAL ILMIAH MATEMATIKA DAN TERAPAN 16, no. 1 (May 20, 2019): 70–78. http://dx.doi.org/10.22487/2540766x.2019.v16.i1.12756.
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PT. Prima Alam Lestari Sentosa is a company engaged in six areas such as transporter fuel, industrial fuel agents pertamina, SPPBE, general construction services, mining contractor, and the procurement of goods and services. In carrying out its production activity is associated with supplies of fuel oil. Where inventory is one of management activities related to storage costs and reservations so that the necessary optimization of inventory. In this study the authors using Economic Order Quantity to optimize the inventory. This study aims is to determine the inventory optimization of fuel oil at PT. Prima Alam Lestari Sentosa and compared it with the fuel inventory optimization EOQ method. . PT Prima Alam Lestari Sentosa set the amount every one reservations is 14212.50 liters with the number of bookings 317 timeseach year and the total cost of supply is 𝑅𝑝. 710.304.976,352,- while when using the EOQ method, the ordering amount is 20.225 liters with the number of bookings are as 223 times each year and the total inventory cost 𝑅𝑝. 668.280.488,26,-. Thus, in the year of 2016, it is about that the company's policy when using the EOQ method is equal to 𝑅𝑝. 24.024.488,092.Keywords : EOQ Method, Inventory, Optimization.
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Kiisler, Ain. "LOGISTICS IN ESTONIAN BUSINESS COMPANIES." TRANSPORT 23, no. 4 (December 31, 2008): 356–62. http://dx.doi.org/10.3846/1648-4142.2008.23.356-362.
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The article describes logistics survey in Estonia carried out in 2007 as a part of the LogOnBaltic project. The level of logistics in Estonian manufacturing, trading and logistics companies is explored through logistics costs, performance indicators, outsourcing, ICT use and logistics self‐estimation of the companies responded. Responses from 186 Estonian companies were gathered through a web‐based survey (38% of manufacturing, 38% of trading and 24% of logistics sector). Logistics costs as the percentage of turnover make in average 13.8% in manufacturing and 13.3% in trading. Transportation and inventory carrying cost form around 70% of overall logistics costs. Considering the logistics indicators surveyed, Estonian companies show up with relatively low perfect order fulfillment rates, short customer order fulfillment cycles and effective management of cash flows. The most widely outsourced logistics function is international transportation followed by domestic transportation, freight forwarding and reverse logistics. By 2010, the outsourcing of IT systems in logistics followed by inventory management, warehousing and product customization is expected to increase more substantially. The awareness of logistics importance is still low among Estonian companies. Only 27–44% of those agree that logistics has a considerable impact on profitability, competitive advantage, top management or customer service level.
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LEE, SHINE-DER, SHU-CHUAN LAN, and CHIN-MING YANG. "ECONOMIC PRODUCTION LOT SIZING MODEL WITH STOCHASTIC DEMAND." Asia-Pacific Journal of Operational Research 31, no. 03 (June 2014): 1450015. http://dx.doi.org/10.1142/s0217595914500158.
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We consider the extended economic production quantity (EPQ) problem when demand follows a Poisson process in a production system. A fixed lot sizing policy is implemented to minimize fluctuation of workload, and to smooth production planning and inventory control. The considered costs include setup cost, inventory carrying cost, and shortage cost when demand cannot be satisfied from stock. The main contributions of this paper are two folds. We develop and analyze the extended EPQ model. Under some mild conditions, the expected cost per unit time can be shown to be convex. Via computational experiments, we demonstrate that, in comparison with classical EPQ model, the average reduction of expected cost is significant when demand is random and the proposed model is used to determine lot sizing policy. Our computational tests have also illustrated the impact of various parameters on the expected cost model and the lot sizing policy.
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Kart, Firat, Louise E. Moser, and P. M. Melliar-Smith. "An Automated Supply Chain Management System and Its Performance Evaluation." International Journal of Information Systems and Supply Chain Management 3, no. 2 (April 2010): 84–107. http://dx.doi.org/10.4018/jisscm.2010040105.
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The MIDAS system is an automated supply chain management system that enables customers, manufacturers, and suppliers to cooperate over the Internet. MIDAS aims to achieve high customer satisfaction by supporting the build-to-order customization model and to reduce inventory carrying costs and logistics administration costs at the manufacturer by supporting the just-in-time manufacturing model. It allows a manufacturer to choose from the MIDAS Registry, suppliers of components, and negotiate based on the prices, availability, and delivery times of those components. The manufacturer can use one of several strategies to aggregate customers’ orders before processing them, and one of several strategies to accumulate suppliers’ quotes before deciding on a particular supplier. The paper presents an evaluation of these strategies in terms of the customer’s satisfaction, as measured by the customer response time, and the manufacturer’s gain, as measured by the number of orders aggregated or the best price ratio.
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Grigor'eva, E. A. "Specifics of determining the discount rate in the machine-building enterprise valuation." Financial Analytics: Science and Experience 13, no. 2 (May 28, 2020): 167–82. http://dx.doi.org/10.24891/fa.13.2.167.
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Subject. Currently, there is an increasing need to determine the market value of organizations. Machine-building enterprises have a number of special features that must be taken into account when evaluating the business. Objectives. The focus is on developing certain provisions of methodology and practice for evaluating engineering organizations, namely, the assessment of additional risk of inventory items’ marketability when calculating the discount rate. Methods. The study employs the dialectical method of cognition, the systems approach, economic and analytical research methods. Results. I analyzed the specifics of marketability of inventory items of engineering enterprises and risks related thereto. The paper offers a three-level classification of stock and its risk identification, taking into account the criteria for dividing the stock by purpose, liquidity, and inventory carrying costs in accordance with the included scale. Based on the classification, I developed recommendations for determining the discount rate when evaluating engineering organizations, aimed at additional risk assessment. Conclusions. Evaluation procedures within the framework of traditional approaches and methods applied to machine-building enterprises disregard the risks that are specific to this type of economic activity. The proposed methodology for calculating the discount rate for these organizations is tailored to the specifics of their operation.
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Vílchez Torres, Mylena Karen, Jimy Frank Oblitas Cruz, and Wilson Castro Silupu. "Optimization of the replacement time for critical repairable components." DYNA 87, no. 214 (July 1, 2020): 93–99. http://dx.doi.org/10.15446/dyna.v87n214.84509.
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Equipment-intensive industries must manage critical components due to their impact on the availability and high inventory carrying costs. In this context, this study seeks to assess mean times between interventions (MTBI) and mean times between failures (MTBF) to determine optimal replacement times for critical repairable components used in six EX5500 hydraulic excavators operating at an open-pit mining site. For these purposes, the authors compared a base policy using the MTBF values provided by the equipment manufacturer, against the proposed policy using the MTBI values obtained from equipment intervention records. The results from the study, revealed that the MTBI policy was able to streamline the replacement times for critical repairable components, thus, generating a cost optimization model at a higher level of reliability
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S.S., Turapin, Savushkin S.S., and Kashtanov V.V. "The operation of hydraulic structures of reclamation complex of the Ministry of agriculture of Russia." Ekologiya i stroitelstvo 2 (2018): 19–26. http://dx.doi.org/10.35688/2413-8452-2018-02-003.
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The article deals with the operation of hydraulic structures (GTS) under the jurisdiction of the Department of land reclamation of the Ministry of agriculture of Russia, designed to provide water reclamation systems. Costs necessary for the maintenance of GTS, ensuring their operability and safe operation, carrying out repair work and other measures are considered. The study is based on information about more than 160 objects. According to the inventory of 2010–2011, the water management complex of Federal property under the jurisdiction of the Ministry of agriculture of the Russian Federation is represented by sixty thousand hydraulic structures. They include 232 reservoirs, more than 2 thousand regulating waterworks, 134 dams, 1.7 thousand supplying and pumping water from stationary pumping stations, more than 40 thousand km of water supply and discharge channels, more than 3 thousand km of protective shafts and dams and other facilities. On the basis of the study found that variation in the value of costs for operation of hydraulic structures in the various organizations 8...10 times. This is due to underfunding of operations, different service life of the GTS, their wear and tear. It is necessary to use the methodology of cost planning by types of GTS. This will ensure the normal financing of operating costs of the reclamation complex.
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LEE, FANG-CHUAN, and UE-PYNG WEN. "A HEURISTIC APPROACH FOR SOLVING SERIALLY DISTRIBUTED STORAGE DEPOTS UNDER GENERAL-INTEGER POLICY." Asia-Pacific Journal of Operational Research 24, no. 04 (August 2007): 479–97. http://dx.doi.org/10.1142/s0217595907001346.
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In this study, we present the problems of shipping a single product from a single supply origin, through a serial system of storage depots, to a single demand destination by trucks or ships, and aim to minimize the sum of ordering, inventory and transportation costs over an infinite time horizon. We formulate the problem consisting of general-integer (GI), stationary and nested replenishment policies for the multistage inventory/distribution system. This paper presents the near-optimal cost-curve structure analysis for this serially distributed storage depot problem (SDSDP) and show that the ordering quantities for each storage depot always comply with the GI replenishment policy. Moreover, we develop a heuristic approach, which is based on an efficient search procedure to obtain satisfactory results. A comparison of the results obtained from the proposed heuristic method has been made with that from the LINGO® software on randomly generated problems. The proposed heuristic is the first solution approach in the literature to solve the single link problems based on the cost-curve structure analysis. Furthermore, we provide an important foundation for carrying out investigations on lot sizing and distribution problems with other supply chain configurations.
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Makkar, Sandhya. "Two Stage Supply Chain Optimization for Perishable Products Under Fuzzy Environment." International Journal of Risk and Contingency Management 8, no. 3 (July 2019): 31–48. http://dx.doi.org/10.4018/ijrcm.2019070103.
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In the changing market scenario, supply chain management is getting phenomenal importance amongst researchers. Studies on supply chain management have emphasized the vitality of a long-term strategic relationship between the supplier, distributor and retailer. In this article, the authors have studied a two-stage supply chain coordination problem under uncertain costs and demand information when integrated procurement and distribution decisions of supply chain has to be employed. The model incorporates a single supplier transporting its products to multiple destinations of a retailer. This process becomes tedious, as when items have an inventory carrying cost incurred due to perishable nature of products. Different discount policies are offered to procure and transport goods from the one stage to other stage. Fuzzy set theory is applied to estimate the uncertainty associated with the input parameters and triangular fuzzy numbers are used to analyze the model. A case is presented to validate the procedure.
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Guimarães, Fernando Silva, Chazele Barbosa dos Santos, Letycia Barros Gonçalves, Leandro Leitzke Thurow, and Marysabel Pinto Telis Silveira. "Tools for inventory control of dental supplies of a municipal health department." Brazilian Journal of Oral Sciences 18 (April 8, 2019): e191313. http://dx.doi.org/10.20396/bjos.v18i0.8655144.
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Aim: Carry out a descriptive and organizational analysis of the Oral Health warehouse of the Municipal Health Department in a city in the South of Brazil in order to assist in its management. Methods: This case study is a descriptive and organizational analysis of the Oral Health warehouse of the Municipal Health Department. The Always Better Control (ABC) curve, and Vital Essential Desirable (VED) analysis and ABC-VED matrix was performed, in order to assist the warehouse’s management. The first stage was a descriptive situational analysis. In the second stage, the supplies were classified by the ABC curve and the VED analysis. Subsequently, the ABC-VED matrix was carried out. Results: Changes were made together with the local manager, such as organizing the products, labeling the items in the proper places and, carrying out the inventory more frequently (monthly). Furthermore, the method the first in, first out (FIFO) was applied. Of the 120 inputs, 13% corresponded to 65% of the expenditures (class A). In class B, close to 26% of the items accounted for 25% of the expenditures. Class C accounted for 10% of the costs and 61% of total materials. In the VED analysis, 19.2% of the items were classified as vital, and 62% and 19% as essential and desirable, respectively. In ABC-VED matrix, 23.3% (72%) belonged to category I, while 63% (25.6%) and 13% (2%) were classified in categories II and III, respectively. Conclusion: The use of inventory control tools granted a better storage of products and made it easier to find the items. The ABC curve, VED analysis and ABC-VED analysis allowed greater control, considering both cost and importance of supplies.
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Nobil, Amir Hossein, Abolfazl Kazemi, and Ata Allah Taleizadeh. "Single-machine lot scheduling problem for deteriorating items with negative exponential deterioration rate." RAIRO - Operations Research 53, no. 4 (August 5, 2019): 1297–307. http://dx.doi.org/10.1051/ro/2018037.
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Determining production-inventory level is one of the most important and challenging problems in a manufacturing system.Economic Batch Quantity(EBQ) is the simplest and the most employed inventory model in this field. Here, a single-source production lot-sizing model for deteriorating products with negative exponential deterioration rate is developed. In this manufacturing system, we assume that all items are manufactured using a single source. In this paper the optimal values for cycle length and lot size are derived in a way that the total cost (consists of machine setup cost, manufacturing cost, carrying and disposal costs of the deteriorating items) is minimized. Consequently, the developed model for the proposed problem is formulated. According to the derived mathematical model, we could not provide a closed form optimal solution, but we show that there is a unique optimal solution for the cycle length. At first, the upper and lower bounds of the optimal solution are determined, then using a Bi-section method (root-finding method) the problem is solved. To demonstrate the applicability of this method, we solve a simple example for a manufacturing system with three products. Finally, results of ten experiment that obtain from this method compare to answers from Newton-Raphson method, then it has been shown that this method has great effectiveness and less calculation efforts for the single-machine problem with deteriorating items.
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Adams, Teresa M., Emil Juni, Mohsin Khalid Siddiqui, and James E. Dzienkowski. "Integrated Field and Office Tools for Bridge Management." Transportation Research Record: Journal of the Transportation Research Board 1933, no. 1 (January 2005): 35–43. http://dx.doi.org/10.1177/0361198105193300105.
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The Wisconsin Department of Transportation's (WisDOT) Bureau of Structures Data Consolidation Project brings together all bridge-related data into a single data warehouse, the Highway Structures Information System (HSIS), which includes inventory, inspection and maintenance records, and maintenance costs. With the new HSIS, WisDOT's interactive bridge inspection forms and data procedures became incompatible. This conflict presented a timely opportunity to investigate alternative data collection tools that would be practicable in the field. This paper investigates the use of alternative field data collection technologies for bridge inspectors. The participation of bridge inspectors in identifying functional requirements led to an assembly of field tools that included the tablet PC with a shoulder carrying case, a noise-canceling headset microphone, and a tethered pen. Bridge inspectors from six districts volunteered to train on the handwriting and speech recognition technologies and then to test the tools in the field. This paper presents the tool selection process, the technology choices assessed, the training of inspectors, the evaluation of the technology adoption, and the economic benefits of the new technology.
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Li, Shi. "Constant Approximation Algorithm for Nonuniform Capacitated Multi-Item Lot Sizing via Strong Covering Inequalities." Mathematics of Operations Research 45, no. 3 (August 2020): 947–65. http://dx.doi.org/10.1287/moor.2019.1018.
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We study the nonuniform capacitated multi-item lot-sizing problem. In this problem, there is a set of demands over a planning horizon of T discrete time periods, and all demands must be satisfied on time. We can place an order at the beginning of each period s, incurring an ordering cost Ks. In this order, we can order up to Cs units of products. On the other hand, carrying inventory from time to time incurs an inventory holding cost. The goal of the problem is to find a feasible solution that minimizes the sum of ordering and holding costs. Levi et al. [Levi R, Lodi A, Sviridenko M (2008) Approximation algorithms for the capacitated multi-item lot-sizing problem via flow-cover inequalities. Math. Oper. Res. 33(2):461–474.] gave a two-approximation for the problem when the capacities Cs are the same. Extending the result to the case of nonuniform capacities requires new techniques as pointed out in the discussion section of their paper. In this paper, we solve the problem by giving a 10-approximation algorithm for the capacitated multi-item lot-sizing problem with general capacities. The constant approximation is achieved by adding an exponential number of new covering inequalities to the natural facility location–type linear programming (LP) relaxation for the problem. Along the way of our algorithm, we reduce the lot-sizing problem to two generalizations of the classic knapsack-covering problem. We give LP-based constant approximation algorithms for both generalizations via the iterative rounding technique.
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Meirizha, St Nova, Ari Andriyas Puji, and Ardi Adrian. "PENERAPAN METODE CROSSDOCKING UNTUK MEMINIMUMKAN BIAYA DISTRIBUSI DAN PERSEDIAAN PADA PT. XYZ." Jurnal Surya Teknika 7, no. 2 (December 20, 2020): 202–8. http://dx.doi.org/10.37859/jst.v7i2.2389.
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Rapid technological development changes the form of competition between profit-oriented companies. The presence of new methods of company management is getting more intense due to the demands of a competitive advantage with other companies. One of the areas that can create competitive advantage is the operational sector. Furthermore, Supply Chain Management has become one of the main components as a competitive strategy to develop the productivity and profitability capabilities of a company. Meanwhile, crossdocking systems have been found for a long time, but the application is often not too significant for companies and there is still room for optimization. Therefore, the researcher was interested in carrying out research related to crossdocking. In this study, the target company is PT. XYZ as a distribution center company that has problems in managing distribution costs and supplies to its partners. By implementing crossdocking, it can help companies in minimizing distribution and inventory costs. The steps in this study are determining vehicle distribution routes, calculating the number of distribution fleets, scheduling distribution fleets, calculating the total safety stock and calculating the ratio of the total cost of supplies in the current condition to the proposed conditions. The research results obtained 2 optimal distribution routes with a total distribution fleet of 2 units, divided into fleet 1 with a capacity of 800 units and fleet 2 with a capacity of 767 units. As for the scheduling results, the makespan value of each fleet is obtained, namely 240 minutes for fleet 1 and 248 minutes for fleet 2. The amount of safety stock for each type of cellphone is Y19 with 27 units of safety stock, Y12 with 102 units of safety stock, Y30 with safety stock 75 units and V19 with safety stock 54 units. The total cost of supplies is 2,989,055 rupiah in one order process.
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Anurogo, Wenang, Muhammad Zainuddin Lubis, and Mir'atul Khusna Mufida. "Modified Soil-Adjusted Vegetation Index In Multispectral Remote Sensing Data for Estimating Tree Canopy Cover Density at Rubber Plantation." Journal of Geoscience, Engineering, Environment, and Technology 3, no. 1 (March 1, 2018): 15. http://dx.doi.org/10.24273/jgeet.2018.3.01.1003.
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Forest inventories such as tree canopy density information require a long time and high costs, especially on extensive forest coverage. Remote sensing technology that directly captures the surface vegetation character with extensive recording coverage can be used as an alternative to carrying out such inventory activities. This research aims to determine the level of vegetation canopy cover density on rubber plants that became the location of the research and know the accuracy of the resulting data. The method used in this research is a combination of remote sensing image interpretation, geographic information system, and field measurement. Information retrieval from remote sensing data is done by using ASTER data imagery. This stage includes three parts, namely: pre-field stage, field stage, and post-field stage. The pre-field stage includes the collection of data to be used (including literature studies related to the theme of the study), image processing (geometric and radiometric correction), cropping, masking, land cover classification, vegetation index transformation, and sample determination. The final result of data processing showed that the density of the vegetation canopy in the research area ranged between 7.31 – 12.952 cm / m2 in each grade of vegetation density. These values indicate the range of low-class vegetation canopy cover density to high-class vegetation canopy cover density in the research area. In this research error rate or root mean square error obtained from the calculation of canopy cover density is equal to 1.89.
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Sharma, Pankaj, and Makarand S. Kulkarni. "Framework for a dynamic and responsive." International Journal of Productivity and Performance Management 65, no. 2 (February 8, 2016): 207–22. http://dx.doi.org/10.1108/ijppm-07-2014-0113.
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Purpose – Armies around the world face the dilemma of reaching the right size of the logistics chain, without compromising the effectiveness of it. The stocking of spares for maintaining the equipment and the vehicles of the army is done with just in case philosophy which results in huge inventories that have associated holding and carrying costs. Material managers of the army must learn lessons from the industry about rightsizing their inventories. Concepts like lean and agile must find place in managing spares of army. Both these concepts have their inherent positives which must be exploited by making use of them at the opportune time. The paper aims to discuss these issues. Design/methodology/approach – The paper starts with discussing the case study of spare parts supply of army. The paper then presents a framework where both lean and agile methods of managing inventory can be used in army. The paper also brings out salient aspects of both these concepts as relevant to spares management in army. The paper also proposes use of automation incorporating MIMOSA database and Ontology-based knowledge repositories. Findings – The paper brings out the fact that both lean and agile supply chains can be used for spares replenishment in army. The paper also gives out a framework to implement the concept. Originality/value – This concept has been used in the field of healthcare, however, this paper is original in its approach to use it for the army spare parts replenishment. Use of Ontology and MIMOSA as proposed in the paper is also an original attempt.
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Majidov, Abdullo Sh, and Yury P. Gusev. "METHOD OF ASYNCHRONOUS ENGINES EQUIVALENCY FOR CALCULATING SHORT CIRCUIT CURRENT IN A SYSTEM OF BALANCE-OF-PLANT NEEDS." Vestnik Chuvashskogo universiteta, no. 3 (August 25, 2020): 102–15. http://dx.doi.org/10.47026/1810-1909-2020-3-102-115.
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In short-circuiting in power plants of balance-of-power plant needs three-phase asynchronous motors with a short-closed rotor have a significant influence on the nature of the process and the magnitude of the short circuit current. In the system of balance-of-plant needs it is necessary to take into account the components of short circuit current from asynchronous motors when selecting and checking switches, as well as when selecting and checking current-carrying parts (cables, complete current wires, etc.) not only at the initial moment of the short circuit, but at the time of its shutdown as well. The methods for calculating short circuit current taking into account the influence of asynchronous motors continue to be improved; there is a search for new methods that simplify calculations as much as possible while maintaining the credibility of the results. In doing so, some issues require further study and research, such as the possibility of asynchronous motors equivalency. Power plants have to take into account the components of the short circuit current from a large number of asynchronous engines, which is not only time-consuming, but sometimes impossible due to the absence of full information on engines and mechanisms of balance-of-plant needs. To improve the efficiency and accuracy of calculations for power plant design tasks, it is advisable to replace asynchronous engine groups with equivalents. The relevance of improving the method of equivalency of asynchronous engines at power plants increases along with increasing requirements to enhance the reliability of electrical installations of balance-of-power plant needs and to reduce the costs of technical inventory due to calculation errors. The article considers the method for equivalencing the group of low-voltage asynchronous motors on the example of the balance-of-plant needs system at TPP № 1 located in the town of Dushanbe of the Republic of Tajikistan. Modeling the electromechanical processes caused by short circuits of different electrical remoteness was carried out using ETAP software complex (OTI, USA).
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Zagorodnov, S. Yu, and I. V. May. "Methodical and organizational aspects in designing sanitary protection zones for a group of enterprises or industrial centers as a toll for complex atmospheric air quality assessment." Russian Journal of Occupational Health and Industrial Ecology, no. 11 (December 4, 2019): 940–44. http://dx.doi.org/10.31089/1026-9428-2019-59-11-940-944.
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Introduction. Sanitary legislation of the Russian Federation provides for the organization of sanitary protection zones of industrial enterprises located in the industrial hub. However, the justification procedure, establishing and monitoring boundaries of a single sanitary zones not fully resolved. This determines the practice of organization by economic entities of individual zones separating production from residential development. This situation complicates the adequate assessment of real pollution, as well as the reasonable development of programs (plans) of environmental measures. Identification of the sources that create poor air quality and public health risks is becoming extremely problematic.The aim of the study is to develop and test recommendations for the organization and methodological support of the design of a single sanitary protection zone of a group of enterprises in the current urban development.Materials and methods. The object of the study is an industrial hub formed by 5 industrial enterprises and located on the territory of a large urban settlement with a population of more than 450 thousand people. The city administration carried out a number of organizational measures that ensured the simultaneous inventory of emissions of enterprises and the design of the general sanitary zone of the industrial complex. The design work was carried out in full accordance with the current regulatory framework.Results. The verified unified database of 102 sources of chemical emissions and 113 sources of noise provided the possibility of summary calculations and obtaining the most correct results for surface concentrations in the zone of influence of the industrial hub. The program of quality control of atmospheric air defining the contribution of each economic subject to carrying out researches is formed. This made it possible to ensure the control of all priority contaminants at the outer border of the sanitary zone and reduce the costs of each separate economic entity. Zones of responsibility of each enterprise within borders of a uniform sanitary zone for tasks of maintenance of the standard maintenance of the territory are allocated.Conclusions. The obtained results confirmed the feasibility of designing unified sanitary protection zones for economic entities located in the industrial hub.
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Snidvongs, Saowarat, Rod S. Taylor, Alia Ahmad, Simon Thomson, Manohar Sharma, Angela Farr, Deborah Fitzsimmons, Stephanie Poulton, Vivek Mehta, and Richard Langford. "Facet-joint injections for non-specific low back pain: a feasibility RCT." Health Technology Assessment 21, no. 74 (December 2017): 1–130. http://dx.doi.org/10.3310/hta21740.
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BackgroundPain of lumbar facet-joint origin is a common cause of low back pain in adults and may lead to chronic pain and disability, with associated health and socioeconomic implications. The socioeconomic burden includes an inability to return to work resulting in loss of productivity in addition to direct and indirect health-care utilisation costs. Lumbar facet-joints are paired synovial joints between the superior and inferior articular processes of consecutive lumbar vertebrae and between the fifth lumbar vertebra and the sacrum. Facet-joint pain is defined as pain that arises from any structure that is part of the facet-joints, including the fibrous capsule, synovial membrane, hyaline cartilage and bone. This pain may be treated by intra-articular injections with local anaesthetic and steroid, although this treatment is not standardised. At present, there is no definitive research to support the use of targeted lumbar facet-joint injections to manage this pain. Because of the lack of high-quality, robust clinical evidence, the National Institute for Health and Care Excellence (NICE) guidelines on the management of chronic low back pain [NICE.Low Back Pain in Adults: Early Management. Clinical guideline (CG88). London: NICE; 2009] did not recommend the use of spinal injections despite their perceived potential to reduce pain intensity and improve rehabilitation, with NICE calling for further research to be undertaken. The updated guidelines [NICE.Low Back Pain and Sciatica in Over 16s: Assessment and Management. NICE guideline (NG59). London: NICE; 2016] again do not recommend the use of spinal injections.ObjectivesTo assess the feasibility of carrying out a definitive study to evaluate the clinical effectiveness and cost-effectiveness of lumbar facet-joint injections compared with a sham procedure in patients with non-specific low back pain of > 3 months’ duration.DesignBlinded parallel two-arm pilot randomised controlled trial.SettingInitially planned as a multicentre study involving three NHS trusts in the UK, recruitment took place in the pain and spinal orthopaedic clinics at Barts Health NHS Trust only.ParticipantsAdult patients referred by their GP to the specialist clinics with non-specific low back pain of at least 3 months’ duration despite NICE-recommended best non-invasive care (education and one of a physical exercise programme, acupuncture or manual therapy). Patients who had already received lumbar facet-joint injections or who had had previous back surgery were excluded.InterventionsParticipants who had a positive result following a diagnostic test (single medial branch nerve blocks) were randomised and blinded to receive either intra-articular lumbar facet-joint injections with steroids (intervention group) or a sham procedure (control group). All participants were invited to attend a group-based combined physical and psychological (CPP) programme.Main outcome measuresIn addition to the primary outcome of feasibility, questionnaires were used to assess a range of pain-related (including the Brief Pain Inventory and Short-Form McGill Pain Questionnaire version 2) and disability-related (including the EuroQol-5 Dimensions five-level version and Oswestry Low Back Pain Questionnaire) issues. Health-care utilisation and cost data were also assessed. The questionnaire visits took place at baseline and at 6 weeks, 3 months and 6 months post randomisation. The outcome assessors were blinded to the allocation groups.ResultsOf 628 participants screened for eligibility, nine were randomised to receive the study intervention (intervention group,n = 5; sham group,n = 4), six completed the CPP programme and eight completed the study.LimitationsFailure to achieve our expected recruitment targets led to early closure of the study by the funder.ConclusionsBecause of the small number of participants recruited to the study, we were unable to draw any conclusions about the clinical effectiveness or cost-effectiveness of intra-articular lumbar facet-joint injections in the management of non-specific low back pain. Although we did not achieve the target recruitment rate from the pain clinics, we demonstrated our ability to develop a robust study protocol and deliver the intended interventions safely to all nine randomised participants, thus addressing many of the feasibility objectives.Future workStronger collaborations with primary care may improve the recruitment of patients earlier in their pain trajectory who are suitable for inclusion in a future trial.Trial registrationEudraCT 2014-003187-20 and Current Controlled Trials ISRCTN12191542.FundingThis project was funded by the National Institute for Health Research (NIHR) Health Technology Assessment programme and will be published in full inHealth Technology Assessment; Vol. 21, No. 74. See the NIHR Journals Library website for further project information.
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Gromysz, Krzysztof, Łukasz Szoblik, Ewa Cyrulik, Agnieszka Tanistra-Różanowska, Zofia Drabczyk, and Szymon Jancia. "Analysis of stabilisation method of gable walls of a barrack located at the section BI of the former KL Auschwitz II-Birkenau." MATEC Web of Conferences 284 (2019): 08004. http://dx.doi.org/10.1051/matecconf/201928408004.
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The subject of the article is an analysis of the stabilisation method of the western gable walls of a barrack with the inventory number B-123, situated at the section BI of the former German Nazi concentration and extermination camp Auschwitz II-Birkenau. The barracks of the former Birkenau have a documentary and historical value and are subject to protective conservation. A barrack with inv. no. B-123 had been erected in the last months of 1941 as a residential barrack, then it was used as a hospital facility. The barrack walls are characterised by low stiffness, because with the building’s plan of 36.17 m 11.39 m, the walls are only 0.12 m thick. Gable walls have been greatly deformed, as a result they have detached from longitudinal walls and their deflection is up to 120 mm. The construction of the walls is at risk, because a bad-quality wall is loaded with horizontal and vertical forces transmitted from the roof, on the eccentricity reaching 120 mm. Deformations are progressing as a consequence of such forces and the walls must be stabilised. In case of the western wall, it was decided to stop its further deformation and to increase the local carrying capacity by stabilising with steel elements connected with ties anchored in the ground. Given the historical value of the plasters with paint coats layers covering the wall, it was decided not to remove the wall deformation mechanically. For the eastern wall, which is not covered with plaster and was partly reconstructed after the war, the removal of its deflection by rectification was designed.
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Castellano, Davide, and Christoph H. Glock. "The average-cost formulation of lot sizing models and inventory carrying charges: a technical note." Operations Management Research, April 14, 2021. http://dx.doi.org/10.1007/s12063-021-00191-2.
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AbstractIt is generally recognised that the present-value criterion should be preferred to the average-cost formulation in developing lot sizing models. Despite the advantages of the present-value measure, average-cost lot sizing models are far more widely applied. Because of the nature of the average-cost formulation, inventory carrying costs are evaluated according to a look-back approach, relying on historical values. In this regard, a general misconception in the inventory management literature concerned with average-cost models is that the unit stockholding cost rate should be established considering fixed warehouse costs, which are costs that are, in the short term, independent of the inventory level. This paper develops arguments supporting our belief that inventory carrying charges used in lot sizing models should take into account only those costs varying with the inventory level in the warehouse, and that considering fixed warehouse costs leads to pitfalls when making inventory replenishment decisions. To this aim, we first present an analytical treatment based on the classical Economic Order Quantity (EOQ) model, as its full analytical tractability permits us to better discuss the problem we are interested in. Finally, we present numerical experiments to assess the effect of the correct procedure to establish the unit stockholding cost rate on inventory management decisions. These experiments are performed considering warehouse costs taken from some industrial case studies presented in the literature.
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B, Ganesh Narkhede, Ganesh Narkhede B, and Neela Rajhans. "Optimizing Inventory Carrying Cost Using Rank Order Clustering Approach for Small and Medium Enterprises (SMES)." Journal of University of Shanghai for Science and Technology 23, no. 1 (January 12, 2021). http://dx.doi.org/10.51201/jusst12550.
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For any company, whether big enterprises or small and medium-sized enterprises (SMEs), inventory is one of the key assets. Therefore, inventory-related decisions directly influence the revenue generated by the firm. This work aims to find a sufficient degree of control over each inventory item and to mitigate the inventory management problems of SMEs. Rank Order Clustering (ROC) algorithm is used in this study for multi-item inventory item aggregation. The proposed framework is tested on a medium-sized gearmanufacturing firm that manufactures 40 different types of planetary and customized gear-boxes. The results demonstrate 47.64 % of cost-saving through the proposed methodology of cluster formation using ROC and quantity discounts. This approach helps to identify different assemblies to aggregate the component requirements and to formulate a particular inventory strategy to minimize inventory carrying costs for each component.
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Fitriadi, Fitriadi. "OPTIMASI SISTEM PERSEDIAAN PRODUK AKHIR AIR MINUM DALAM KEMASAN (AMDK) DENGAN MENGGUNAKAN KONSEP LEAN MANUFACTURING." Jurnal Optimalisasi 3, no. 4 (October 25, 2018). http://dx.doi.org/10.35308/jopt.v3i4.264.
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and eliminate waste. CV. Hidup Baru is a company that manufactures Bottled Drinking Water (bottled water) systems make to stock. The company set a number of production based on rough estimates of consumer demand in the previous periods. This causes the total production exceeds the amount of consumer demand for 6 periods within the range of the last 12 periods derived from historical data of the company. According to these data, too, can be seen an average of the final product inventory in the warehouse at 280% of the final product in each period. Stacking sizable inventory of this course will cause the cost of carrying cost is high. Therefore, this study aimed to optimize the amount of inventory in the warehouse by using the concept of lean manufacturing, in which the system uses the reorder point (amount of safety stock) as the minimum inventory that should be there in the shed, so companies can plan production quantities which should be generated in the next period. The results showed that with the proposed inventory system obtained total cost savings reached 716.100 cardboard carrying cost and inventory turnover value of 2 times is also larger than the current inventory system.Keywords: Lean Manufacturing, Safety Stock, Carrying Costs, Inventory Turnover
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Farris, Ted, and Ila Manuj. "Innovative Distribution Company: A Total Cost Approach to Understanding Supply Chain Risk." Council of Supply Chain Management Professionals Cases, November 1, 2018, 1–9. http://dx.doi.org/10.1108/case.cscmp.2018.000014.
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This case illustrates the use of the total cost of ownership concept to analyse and compare two supply chains – one international and one domestic. The case provides an opportunity to calculate economic order quantity and safety stock quantities and then combine purchase price, shipping costs, and inventory carrying costs to quantify the differences between the two supply chains.
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"Optimization of a Five-Echelon Supply Chain Network using Particle Swarm Intelligence Algorithms." International Journal of Innovative Technology and Exploring Engineering 8, no. 9 (July 10, 2019): 2015–22. http://dx.doi.org/10.35940/ijitee.i8594.078919.
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Technology has shrunk the global markets and information is accessible very quickly and effortlessly. Business organizations world over concentrate on their production systems to improve the quality of the end product, well distribute the product and optimize cost of resources. Transportation cost, inventory carrying cost and shortage costs constitute the major costs in cost of distribution. A competent supply chain always strives to manufacture the right quantity of end products and hold a minimum inventory across the entire supply chain. In thecurrent paper, a five echelon supply chain model is developed and it is optimized using particle swarm intelligence algorithm.
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Farris, Ted. "Silo Manufacturing Corporation (SMC) Managing with Economic Order Quantity." Council of Supply Chain Management Professionals Cases, November 1, 2018, 1–8. http://dx.doi.org/10.1108/case.cscmp.2018.000020.
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This two-part case illustrates the use of economic order quantity to manage conflicting performance measures across different siloed functions in an organization. Part A requires students to assess the costs of various order quantities and quantify the concept of “robustness.“ Part B emphasizes managing the variables of annual demand, ordering cost, inventory carrying cost, and unit price to achieve strategic goals. The student must determine how to lower ordering costs to compensate for increases in the other variables as well as to help guide Just-In-Time implementation efforts.
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Mohebban-Azad, Ehsan, Amir-Reza Abtahi, and Reza Yousefi-Zenouz. "A reliable location-inventory-routing three-echelon supply chain network under disruption risks." Journal of Modelling in Management ahead-of-print, ahead-of-print (July 26, 2021). http://dx.doi.org/10.1108/jm2-02-2020-0052.
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Purpose This study aims to design a reliable multi-level, multi-product and multi-period location-inventory-routing three-echelon supply chain network, which considers disruption risks and uncertainty in the inventory system. Design/methodology/approach A robust optimization approach is used to deal with the effects of uncertainty, and a mixed-integer nonlinear programming multi-objective model is proposed. The first objective function seeks to minimize inventory costs, such as ordering costs, holding costs and carrying costs. It also helps to choose one of the two modes of bearing the expenses of shortage or using the excess capacity to produce at the expense of each. The second objective function seeks to minimize the risk of disruption in distribution centers and suppliers, thereby increasing supply chain reliability. As the proposed model is an non-deterministic polynomial-time-hard model, the Lagrangian relaxation algorithm is used to solve it. Findings The proposed model is applied to a real supply chain in the aftermarket automotive service industry. The results of the model and the current status of the company under study are compared, and suggestions are made to improve the supply chain performance. Using the proposed model, companies are expected to manage the risk of supply chain disruptions and pay the lowest possible costs in the event of a shortage. They can also use reverse logistics to minimize environmental damage and use recycled goods. Originality/value In this paper, the problem definition is based on a real case; it is about the deficiencies in the after-sale services in the automobile industry. It considers the disruption risk at the first level of the supply chain, selects the supplier considering the parameters of price and disruption risk and examines surplus capacity over distributors’ nominal capacity.
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Kay, Michael G., Kenan Karagul, Yusuf Şahin, and Gurhan Gunduz. "Minimizing Total Logistics Cost for Long-Haul Multi-Stop Truck Transportation." Transportation Research Record: Journal of the Transportation Research Board, September 23, 2021, 036119812110415. http://dx.doi.org/10.1177/03611981211041596.
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Whenever there is sufficient demand, companies generally prefer the full truckload (TL) option for long-distance transport, resulting in large and less frequent shipment operations that can be costly if inventory carrying costs are high. Less than truckload (LTL) is another option for transport when carrying costs are high and/or there is insufficient demand. Shipment consolidation provides another option that combines many of the benefits of both TL and LTL. Shipment consolidation is a cost-effective transport solution that combines different size shipments into a single truckload. Combining many loads as a single load brings together economies of scale and potential savings. Traditional routing techniques that minimize distance are not suitable for shipments that have different origins and destinations because it can be beneficial to travel further to minimize overall transport and inventory cost, or what is termed total logistics cost (TLC). Effective consolidation of multi-stop routes to minimize TLC requires routing procedures that are more computationally intensive to find beneficial combinations of loads into consolidated shipments. In this study, we have developed a saving-based procedure to determine consolidated route sequences that minimize the TLC of shipments. Twenty-one data sets were produced using real city coordinates and population densities in North Carolina to demonstrate the effectiveness of the procedure. The solutions of the proposed method are compared with the solutions of the traditional Clarke and Wright (C-W) algorithm. Although the traditional C-W algorithm provides very fast solution times, the proposed method has produced much better solution values.
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E. Oguntade, Adegboyega, and Taiwo E. Mafimisebi. "PRICING AND OPERATIONAL EFFICIENCIES IN THE LIVESTOCK FEED MARKET IN ONDO STATE, NIGERIA." Revista de Economia e Agronegócio 8, no. 2 (June 2, 2015). http://dx.doi.org/10.25070/rea.v8i2.169.
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The Nigerian commercial poultry sector is dependent on commercial feeds.Evaluation of the operational and pricing efficiencies of poultry feed marketing isessential for improving efficiencies in the feed industry and lowering the price ofpoultry products. A multistage sampling technique was used to select the firms studied.Tools used to analyze data collected included index of pricing and operational efficiencies;and regression analysis. The firms studied handled about N251,870,000 of feed perannum, had an annual Inventory Carrying Cost (ICC) of N4,587,762 and an averageICC of N114,694 per firm. The Marketing Costs (MC) for all the firms was N16,813,860per annum while the average MC was N420,347. Major contributors to ICC werestorage; handling and security costs while storage, transportation and capital costswere major contributors to MC. Efforts to minimize costs should therefore be focusedat reducing transportation costs and optimal utilization of storage space. The AverageMarketing Costs (AMC) declined with increase in quantity marketed (QM) while unitprofit increased with QM. Firms therefore need to increase QM. Marketing Margin(MM) and MC were significantly different from each other. Also, QM was a significantexplanatory variable of MM, implying that there was no pricing efficiency in themarket. Relative efficiency increased with QM, suggesting that firms should strive toincrease the quantity of feed marketed. The major contribution of this study is that itprovides information on the components of marketing costs and size economies in thepoultry feed industry in Ondo State, Nigeria.