Papers by Keyword: Inventory Control

Abstract: As the raw grain processing, the problems of foodstuffs storage deterioration gradually appear, it will affect the enterprise operation costs. The paper analyzed the factors affecting inventory cost with deterioration rate, shortage cost and probabilities of stock on hand and so on, established an inventory control model based on service level constraints. The relationship of deterioration costs and inventory costs were researched on the basis of the model, and gave a method in order to solve the problem of optimization inventory and minimum costs. With the simulation case, the model can effectively solve the problem better.

Abstract: Firstly, the inventory control models were studied, considering of the cost of store and lack of stock. Secondly, both the models of the distribution centre and supplier were presented. Finally, a numeric example was analyzed by applying the models. The results show that the models are easily to be carried out in engineering field, and it is useful to control the inventory and raise the store efficiency.

Abstract: Spare parts are a kind of protective materials for normal equipment maintenance and emergency treatment. Effective management of spare parts can not only guarantee the continuity and safety of production, but also improve the productivity. Firstly, the paper summarized the characteristics of spare parts and current problems existing in their management. Then it established the collaborative management model of spare parts around procurement management and inventory management of spare parts. Finally, the paper proposed the operation mode of collaborative management based on e-marketplaces – the third-party e-marketplace. Furthermore, there provided the functions and operation process of the third-party e-marketplace. Third-party e-marketplaces can realize the collaborative management of procurement and inventory through integrating members of the company alliance in horizon and associating suppliers with purchasers in vertical.

Abstract: This paper investigates the optimal forecasting method in reducing supply chain amplification, a.k.a., the Bullwhip Effect. By using a simple replenishing policy and solving Stein Matrix Equations, the relationship between input and output covariance matrices is derived. Both analytical and simulational results support the opinion that proportional forecasting is superior in bullwhip mitigation. There exists trade-off in reducing variance amplifications in order and inventory. For different control objectives, we propose optimal proportional controllers.

Abstract: The research of joint replenishment problem in multi-item spare part inventory is an important orientation of inventory control, and it is difficult to solve. A model for continuity joint replenishment in stochastic demand is advanced. And the arithmetic is designed. Firstly, this arithmetic reserves reorder point of items according to the constraints of spare part supportability. Secondly, the cost and parameters of policy is computed. Finally, a solution is advanced for multi-item inventory cost. At last, the results indicate that the heuristic algorithm can effectively solve the problem.

Abstract: In view of typical many-one distribution network in the modern distribution logistics system, the mathematic model on the inventory-transportation integrated optimization problem with stochastic demand and diversified products was established by using a bi-level programming method. Both decisions of inventory control and transportation arrangement were made at the same time. An improved heuristic algorithm was proposed to divide the integration problem into both problems of the inventory and the transportation: the cost were distributed by the former according to different products and the optimized cost was sought out by the latter according to different periods, thus the inventory-transportation integrated optimization problem was solved through the repeated iteration between the former and the latter. The mathematic description and the heuristic algorithm to the massive practice of the modern distribution logistics system are realized.

Abstract: In order to solve the Inventory-transportation Integrated Optimization problem (ITIO problem) in a distribution network consisting of many warehouses and many retailers, the Lagrange multiplier method, the scenario-based Dynamic Slope Scaling Procedure (DSSP) heuristics and the Lagrangian relaxation-based DSSP heuristics were applied to integrate the system of inventory control and transportation scheduling respectively and in proper sequence. The more efficient Lagrangian relaxation-based DSSP heuristics is found in solving the ITIO problem. And furthermore, the comparative experiments prove the heuristics can get the optimized results in less calculating time and the efficiency of this method is also proved in solving the ITIO problem in a many-to-many distribution network.

Abstract: In many-one distribution system, the Greedy Randomized Adaptive Search Procedure (GRASP) was applied to solve the Inventory-transportation Integrated Optimization problem (ITIO problem). The ITIO problem in many-one distribution system is difficult. When the product variety, the supplier quantity or the vehicle capacity increases, the calculated quantity will increase exponentially, and it is very difficult to get an exact solution. However, the GRASP can answer this problem. Further, by analyzing the computer experiments, it is proved that the GRASP can find the better solution to the ITIO problem in less time, and the quality of the solution will be improved with the size of the problem expanding.

Abstract: In this paper, the method of system dynamics is applied for the supply chain inventory management in FMCG industry. Based on the analysis of three-level supply chain inventory control loop, this paper establishes system dynamic models related profits and the service level of 2&3-level supply chain. After testing the validity of the model, the writer does some simulation through the system dynamics software Vensim．In addition, the model and simulation described in the paper are highly understandable and practicable, and thus have a very good prospect of application.

Abstract: This paper is focused on the study of (T, S) stock strategies in dynamic supply chains. The dynamic supply chain means the retailer can change his suppliers in every purchase period for more profits. Four categories of two-stage supply chain structures consisting of multiple suppliers and a single retailer are considered. Two categories of auction mechanisms, single-winner or multi-winner auction, are used in this paper. A multi-agent model is developed to study these four categories of supply chains. The results of experiments show that, with the decrease of safety stock, the tendencies of the retailer’s profit are changed under different structures. Also, the optimal (near-optimal) safety stock, corresponding to the maximum profit, shows significant difference under different structures. The results of this paper demonstrate that the safety stock can be significantly changed and financial benefits can be achieved while working under different supply chain structures with (T, S) strategy.