Download or read book Inventory Positioning Strategies in Multi echelon Distribution Systems written by Peter Michael Arnold and published by . This book was released on 1992 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Inventory Positioning for a Multi echelon Distribution Network written by Deepak Avari and published by . This book was released on 2009 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis presents a framework for deciding which products to centralize in a regional distribution center and which products to store decentralized close to the customer sites, for each facility in a multi-echelon distribution network. Our research specifically focuses on developing an optimization model to determine the inventory positioning strategy that minimizes total costs. The model considers both inbound and outbound transportation costs along with inventory holding costs at all facilities in the network. The total cost and responsiveness of the optimal solution are compared with the baseline network, in which inventory is completely decentralized. Our analysis is performed using several products that have diverse characteristics, in terms of demand patterns, lead-times, product costs, service-level requirements, transportation modes, and supplier locations. A sensitivity analysis is performed to study how a variance in these parameters affects the optimal solution. The research suggests that for high volume commodity items the benefits of centralization are highly dependent upon the degree of lane consolidation. However, for low volume specialty items, centralization can provide immediate benefits with no change to the existing transportation network.

Download or read book Strategic Inventory Placement in Large Scale Multi Echelon Networks written by Josef Svoboda and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The placement and sizing of safety stocks in supply chains pose a challenging optimization problem. State-of-the-art multi-echelon inventory optimization models, such as the guaranteed-service approach, are non-linear and depend on statistical, time-series-based approaches that require distributional and parametric assumptions. We propose a data-driven, non-parametric and distribution-free approach for safety stock planning in multi-echelon inventory networks that utilizes historical demand and feature data. We extend data-driven optimization in inventory control from newsvendor models to multi-period and multi-echelon problems. Our model accommodates general, acyclic multi-echelon networks and simultaneously determines safety stock allocation and sizing by setting cost-optimal base stocks for all stages under consideration of service requirements. By developing a mixed-integer programming formulation and a Benders decomposition method, we offer a novel methodological approach to a well-studied problem that can be solved with commercial mathematical programming solvers. We also provide a probabilistic analysis of the data-driven performance relative to an oracle solution when sample data is limited. We show that the mixed integer programming approach is scalable by solving 38 large-scale supply chain benchmark networks with assembly, distribution, and general structures.

Download or read book Strategic Inventory Placement in Multi echelon Supply Chains written by Tor Ivar Schoenmeyr and published by . This book was released on 2008 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: (cont.) In a case study, we obtained data from the supply chain of an electronic test system, as well as characterized the forecasting process. We found that incorporating the forecast process led to 25% reduction of safety stocks.

Download or read book Multi echelon Inventory Strategies for a Retail Replenishment Business Model written by Benjamin Michael Polak and published by . This book was released on 2014 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: The mission of the Always Available retail replenishment business at NIKE is to ensure consumer-essential products are in-stock at retailers at all times. To achieve this goal, NIKE has developed a forecast-driven, make-to-stock supply chain model which allows retailers to place weekly orders to an on-hand inventory position in a distribution center. The challenge facing the business is how to design an inventory strategy that achieves a high level of service to its customers while minimizing inventory holding cost. Specifically, safety stock holding cost is targeted as it accounts for the majority of on-hand inventory and can be reduced without significantly impacting the underlying supply chain architecture. This thesis outlines the application of multi-echelon inventory optimization in a retail replenishment business model. This technique is used to determine where and how much safety stock should be staged throughout the supply chain in order to minimize safety stock holding cost for a fixed service level. Provided a static supply chain network, the ideal safety stock locations and quantities which result in minimal total safety stock holding cost is determined. For this business, the optimal solution is to stage lower-cost component materials with long supplier lead times and high commonality across multiple finished goods at the manufacturer in addition to finished goods at the distribution centers. Safety stock holding cost reduction from component staging increases significantly when the distance between manufacturers and the distribution center decreases and for those factories producing a variety of finished goods made from the same component materials due to inventory pooling. Forecast accuracy drives the quantity of safety stock in the network. The removal of low volume, highly unpredictable products from the portfolio yields significant inventory holding cost savings without a detrimental impact to revenue. By deploying the optimal safety stock staging solution and by removing unpredictable products, this analysis shows that finish goods safety stock inventory would be reduced by 35% for the modeling period (calendar year 2012) while only decreasing topline revenue by 5%.

Download or read book An Examination of Safety Stock Policies in Multi echeloned Distribution Systems written by Robert Lorin Cook and published by . This book was released on 1980 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Optimization of R Q Policies for Multi echelon Inventory Systems with Guaranteed Service written by Peng Li and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Comparative Simulation of Central Inventory Control Policies for Positioning Safety Stock in a Multi echelon Distribution System written by William Bolton Allen and published by . This book was released on 1983 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Multi Echelon Inventory Optimization and Demand Side Management Models and Algorithms written by Lin He and published by . This book was released on 2014 with total page 127 pages. Available in PDF, EPUB and Kindle. Book excerpt: Next we study another basic inventory network structure, a distribution system. We study continuous-review, multi-echelon distribution systems subject to supply disruptions, with Poisson customer demands under a first-come, first-served allocation policy. We develop a recursive optimization heuristic, which applies a bottom-up approach that sequentially approximates the base-stock levels of all the locations. Our numerical study shows that it performs very well.

Download or read book Optimal Positioning of Inventory Stock in a Multi Echelon System written by George F. Brown jr. and published by . This book was released on 1971 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper considers optimal stockage and resupply policies for a multi-echelon inventory system in which the time and cost of resupply can be altered by various logistical expenditures. At stations on the lowest echelon, demands arise due to part failure. With some probability, the part can be repaired at this echelon. Spare parts may be obtained from inventory, through repair, or by ordering, after a delivery lag. Multiple lower echelons are supported by each intermediate stock point, but no monitoring of lower echelon usage occurs. A dynamic programming model is used to derive optimal stockage and recorder policies for each echelon as a function of the resupply time. An analysis of the effects of expenditures on the resupply system itself, employing branch and bound techniques, is then used to determine an overall optimum. Preliminary results from an application of this procedure to the Naval Aviation support system are presented. (Author).

Download or read book A comparative simulation simulation of central inventory control policies for positioning safety stock in a multi echelon distribution system written by William A. Allen and published by . This book was released on 1983 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Inventory and Production Management in Supply Chains written by Edward A. Silver and published by CRC Press. This book was released on 2016-12-19 with total page 810 pages. Available in PDF, EPUB and Kindle. Book excerpt: Authored by a team of experts, the new edition of this bestseller presents practical techniques for managing inventory and production throughout supply chains. It covers the current context of inventory and production management, replenishment systems for managing individual inventories within a firm, managing inventory in multiple locations and firms, and production management. The book presents sophisticated concepts and solutions with an eye towards today’s economy of global demand, cost-saving, and rapid cycles. It explains how to decrease working capital and how to deal with coordinating chains across boundaries.

Download or read book Demand Driven Inventory Optimization and Replenishment written by Robert A. Davis and published by John Wiley & Sons. This book was released on 2016-01-19 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: Remove built-in supply chain weak points to more effectively balance supply and demand Demand-Driven Inventory Optimization and Replenishment shows how companies can support supply chain metrics and business initiatives by removing the weak points built into their inventory systems. Beginning with a thorough examination of Just in Time, Efficient Consumer Response, and Collaborative Forecasting, Planning, and Replenishment, this book walks you through the mathematical shortcuts set up in your management system that prevent you from attaining supply chain excellence. This expanded second edition includes new coverage of inventory performance, business verticals, business initiatives, and metrics, alongside case studies that illustrate how optimized inventory and replenishment delivers results across retail, high-tech, men's clothing, and food sectors. Inventory optimization allows you to avoid out-of-stock situations without impacting the bottom line with excessive inventory maintenance. By keeping just the right amount of inventory on hand, your company is better able to meet demand without sacrificing the cost-effectiveness of other supply chain strategies. The trick, however, is determining "just the right amount"—and this book provides the background and practical guidance you need to do just that. Examine the major supply chain strategies of the last 30 years Remove the shortcuts that prohibit supply chain excellence Optimize your supply/demand balance in any vertical Overcome systemic weaknesses to strengthen the bottom line Inventory optimization is benefitting companies around the world, as exemplified here by case studies involving Matas, PWT, Wistron, and Amway. When inefficiencies are built into the system, it's only smart business to identify and remove them—and implement a new streamlined process that runs like a well-oiled machine. Demand-Driven Inventory Optimization and Replenishment is an essential resource for exceptional supply chain management.

Download or read book Designing a Multi Product Multi Echelon Inventory System written by Donald Gross and published by . This book was released on 1979 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: Large scale inventory distribution systems typically require a hierarchy of retail stores and warehouses to satisfy the demands of their customers. This paper presents a 0-1 nonlinear programming model for finding the best design of such systems. To use this model, it is necessary to know the optimal inventory policies for multi-echelon system. Therefore, part of this paper is devoted to describing how a dynamic programming approach, first suggested by Andrew Clark, can be used to obtained these policies. The paper presents examples of the use of the nonlinear programming model to find the design of an inventory distribution system. Finally, we present a reformulation of the nonlinear programming model as a 0-1 linear programming model, incorporate capacity constraints at the retail stores and warehouses, and illustrate the use of the new model. (Author).

Download or read book Optimal Design of Multi Product Multi Echelon Inventory Systems written by Charles E. Pinkus and published by . This book was released on 1972 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: Large scale inventory distribution system typically comprise a hierarchy of retail stores and warehouses. The paper presents a model for finding the optimal design of such systems. Given the maximum number of facilities under consideration and their possible locations, the problem is to determine which facilities to include in the system and which products to stock at each in order to minimize the cost of the system. Demand for the products may be deterministic or stochastic. To use the model it is necessary to know the optimal inventory policies for the multi-echelon systems under consideration, however, an important feature of this work is that any multi-echelon model may be used in tandem with this design model. Included is an example to illustrate the model and the two points which are the basis for its formulation: first, there is generally no single design which is best for all products; second, the design which is optimal for a given product is not necessarily the best design to use when trying to minimize the cost of the entire system. (Author).

Download or read book Strategic Safety Stocks in Supply Chains written by Stefan Minner and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt: Increasing customer requirements, product variety, and market competition demand for service and cost improvements by model based inventory control in supply chains. The book presents approaches for safety stock determination in manufacturing and logistics networks. Most of the existing literature provides methods for very specific types of supply networks. The approach presented in this book follows a material flow philosophy that allows for several extensions of the basic models and therefore offers a wide applicability within decision support systems. Models for several types of problems and network structures are presented and analyzed to develop efficient optimization algorithms and heuristics.

Download or read book Inventory Management for Multi echelon Supply Chains written by Zumbul Atan and published by . This book was released on 2010 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: Finally, we propose an inventory rationing policy for a distribution network where transshipments among locations are allowed. We propose an approximate iterative procedure to find the best rationing policy for each individual location in the system. We elaborate on how transshipments affect optimal stocking policies and identify the systems which benefit from transshipments the most.