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 Optimization and Inventory Management written by Nita H. Shah and published by Springer Nature. This book was released on 2019-08-31 with total page 470 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses inventory models for determining optimal ordering policies using various optimization techniques, genetic algorithms, and data mining concepts. It also provides sensitivity analyses for the models’ robustness. It presents a collection of mathematical models that deal with real industry scenarios. All mathematical model solutions are provided with the help of various optimization techniques to determine optimal ordering policy. The book offers a range of perspectives on the implementation of optimization techniques, inflation, trade credit financing, fuzzy systems, human error, learning in production, inspection, green supply chains, closed supply chains, reworks, game theory approaches, genetic algorithms, and data mining, as well as research on big data applications for inventory management and control. Starting from deterministic inventory models, the book moves towards advanced inventory models. The content is divided into eight major sections: inventory control and management – inventory models with trade credit financing for imperfect quality items; environmental impact on ordering policies; impact of learning on the supply chain models; EOQ models considering warehousing; optimal ordering policies with data mining and PSO techniques; supply chain models in fuzzy environments; optimal production models for multi-items and multi-retailers; and a marketing model to understand buying behaviour. Given its scope, the book offers a valuable resource for practitioners, instructors, students and researchers alike. It also offers essential insights to help retailers/managers improve business functions and make more accurate and realistic decisions.

Download or read book Inventory Management in Multi Echelon Networks written by Christopher Grob and published by Springer. This book was released on 2018-08-14 with total page 153 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inventory Management in Multi-Echelon Networks presents methods to plan inventory in distribution networks. By holistically looking at the supply chain, it shows how safety stocks across all echelons can be optimized if inventory of all levels is taken into consideration. The gap between the existence of advanced inventory planning methods and their low penetration in the industry was the motivation for this book. Christopher Grob develops essential algorithms that companies can use for network inventory planning and highlights achievable implementation benefits. The work of the author was inspired by the needs of an after sales supply chain of a large automotive company. This company supplies customers all over the world with spare parts and operates a distribution network with more than 100 warehouses. This supply chain faces two particular challenges: demand is highly uncertain and customers expect a high service level. About the Author Christopher Grob works in after sales supply chain management at a major German automotive company. He is responsible for the functional development of inventory planning systems for the spare parts business. He is an expert in the field of inventory management.

Download or read book Inventory Optimization written by Nicolas Vandeput and published by Walter de Gruyter GmbH & Co KG. This book was released on 2020-08-24 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book . . . Nicolas Vandeput hacks his way through the maze of quantitative supply chain optimizations. This book illustrates how the quantitative optimization of 21st century supply chains should be crafted and executed. . . . Vandeput is at the forefront of a new and better way of doing supply chains, and thanks to a richly illustrated book, where every single situation gets its own illustrating code snippet, so could you. --Joannes Vermorel, CEO, Lokad Inventory Optimization argues that mathematical inventory models can only take us so far with supply chain management. In order to optimize inventory policies, we have to use probabilistic simulations. The book explains how to implement these models and simulations step-by-step, starting from simple deterministic ones to complex multi-echelon optimization. The first two parts of the book discuss classical mathematical models, their limitations and assumptions, and a quick but effective introduction to Python is provided. Part 3 contains more advanced models that will allow you to optimize your profits, estimate your lost sales and use advanced demand distributions. It also provides an explanation of how you can optimize a multi-echelon supply chain based on a simple—yet powerful—framework. Part 4 discusses inventory optimization thanks to simulations under custom discrete demand probability functions. Inventory managers, demand planners and academics interested in gaining cost-effective solutions will benefit from the "do-it-yourself" examples and Python programs included in each chapter. Events around the book Link to a De Gruyter Online Event in which the author Nicolas Vandeput together with Stefan de Kok, supply chain innovator and CEO of Wahupa; Koen Cobbaert, Director in the S&O Industry practice of PwC Belgium; Bram Desmet, professor of operations & supply chain at the Vlerick Business School in Ghent; and Karl-Eric Devaux, Planning Consultant, Hatmill, discuss about models for inventory optimization. The event will be moderated by Eric Wilson, Director of Thought Leadership for Institute of Business Forecasting (IBF): https://youtu.be/565fDQMJEEg

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 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 Optimal Inventory Modeling of Systems written by Craig C. Sherbrooke and published by Springer Science & Business Media. This book was released on 2006-04-11 with total page 350 pages. Available in PDF, EPUB and Kindle. Book excerpt: Most books on inventory theory use the item approach to determine stock levels, ignoring the impact of unit cost, echelon location, and hardware indenture. Optimal Inventory Modeling of Systems is the first book to take the system approach to inventory modeling. The result has been dramatic reductions in the resources to operate many systems - fleets of aircraft, ships, telecommunications networks, electric utilities, and the space station. Although only four chapters and appendices are totally new in this edition, extensive revisions have been made in all chapters, adding numerous worked-out examples. Many new applications have been added including commercial airlines, experience gained during Desert Storm, and adoption of the Windows interface as a standard for personal computer models.

Download or read book Data Analytics and Artificial Intelligence for Inventory and Supply Chain Management written by Dinesh K. Sharma and published by Springer Nature. This book was released on 2022-11-08 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book considers new analytics and AI approaches in the areas of inventory control, logistics, and supply chain management. It provides valuable insights for the retailers and managers to improve business operations and make more realistic and better decisions. It also offers a number of smartly designed strategies related to inventory control and supply chain management for the optimal ordering and delivery policies. The book further uses detailed models and AI computing approaches for demand forecasting to planning optimization and digital execution tracking. One of its key features is use of real-life examples, case studies, practical models to ensure adoption of new solutions, data analytics, and AI-lead automation methodologies are included.The book can be utilized by retailers and managers to improve business operations and make more accurate and realistic decisions. The AI-based solution, agnostic assessment, and strategy will support the companies for better alignment and inventory control and capabilities to create a strategic road map for supply chain and logistics. The book is also useful for postgraduate students, researchers, and corporate executives. It addresses novel solutions for inventory to real-world supply chain and logistics that retailers, practitioners, educators, and scholars will find useful. It provides the theoretical and applicable subject matters for the senior undergraduate and graduate students, researchers, practitioners, and professionals in the area of artificial intelligent computing and its applications in inventory and supply chain management, inventory control, and logistics.

Download or read book Multi echelon Inventory Optimization in a Rapid response Supply Chain written by Robert Giacomantonio and published by . This book was released on 2013 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: The motivation for multi-echelon supply chain management at Nike is to more cost-effectively accommodate customer-facing lead time reduction in the rapid-response replenishment business model. Multi-echelon inventory management, as opposed to a traditional finished-goods only philosophy, provides two clear benefits to a make-to-stock supply chain: first, it increases flexibility through staging calculated work-in-process inventory buffers at critical supply chain links and allowing postponed identification of finished goods; second, inventories held as work-in- process are typically carried at lower cost than finished goods. This thesis details the completion of a project intended to improve Nike's ability to determine optimal inventory levels by balancing cost and service level tradeoffs in a multi-echelon-enabled environment. The goal is to develop an inventory modeling methodology for Nike's supply chain data architecture specifically to evaluate the hypothesis that multi-echelon inventory management will present only limited opportunity for cost reduction in offshore, long lead time make-to-stock supply chains. To directly asses the hypothesis, Llamasoft's Supply Chain Guru optimization software will be deployed to create an inventory optimization model for a specific family of apparel products sold as part of Nike's replenishment offering in North America. The modeling results confirm the hypothesis that multi-echelon inventory management offers little value to the current offshore supply chain. Sensitivity and scenario analysis is utilized to identify significant inventory drivers, areas for substantial improvement, and profitable opportunities for multi-echelon inventory management.

Download or read book Analysis and Algorithms for Service Parts Supply Chains written by John A. Muckstadt and published by Springer Science & Business Media. This book was released on 2006-12-26 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt: * Provides a broad overview of modeling approaches and solution methodologies for addressing inventory problems, particularly the management of high cost, low demand rate service parts found in multi-echelon settings * The text may be used in a variety of courses for first-year graduate students or senior undergraduates, or as a reference for researchers and practitioners * A background in stochastic processes and optimization is assumed

Download or read book Algorithmic Intervention to Mitigate Inventory and Ordering Amplification in Multi echelon Supply Chains written by James Edward Paine and published by . This book was released on 2020 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: The ‘bullwhip effect’ is a classic, yet persisting, problem with reverberating consequences in inventory management and refers to how forecast errors and safety stock builds yield increasing amplitudes in both orders and on-hand inventory positions the further one moves away from a source of order variability. The bullwhip effect is responsible for both excessive strain on real world inventory management systems, stock outs, and unnecessary capital reservation though safety stock building. In this paper, the author develops algorithmic approaches to mitigating bullwhip using simulation modeling, including cost minimization and amplification minimization, and then interprets the results in the context of existing models of human heuristics in ordering decisions. The algorithmic approaches are optimized as one member within a model of a human decision makers operating within a multi-echelon supply chain with imperfect information sharing and information delays. Within the optimization, human decision biases such as supply line under-weighting are compensated for by the developed methods via the control of the flow of information and simulated physical goods both up and downstream. In all methods developed, inventory and ordering oscillations are minimized in the simulated environment. The overall goal of this project is to develop useful, implementable, and (to the degree possible) understandable algorithms capable of mitigating bullwhip generated by real humans when placed into an actively evolving inventory management crisis in-progress. To this end, the parameters that emerge in the developed algorithm are mapped to previously observed modes of behavior that mitigate the effects of bullwhip. The resulting algorithms act in a manner analogous to those exhibiting high levels of trust within the supply chain, coupled with a cautious approach to information signals outside of the supply chain. Desired stock levels of the resulting algorithms approach those found in optimal base-stock replenishment policies. Finally, it is observed that the algorithm does not fall prey to supply line under-weighting and can act to offset the ordering decisions that typically result in bullwhip in a simulated model of a multi-echelon supply chain.

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 Continuous Review Policies for a Multi Echelon Inventory Problem With Stochastic Demand Classic Reprint written by Marc de Bodt and published by . This book was released on 2015-08-05 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: Excerpt from Continuous-Review Policies for a Multi-Echelon Inventory Problem With Stochastic Demand Continuous-Review Policies for a Multi-Echelon Inventory Problem With Stochastic Demand was written by Marc de Bodt and Stephen C. Graves in 1982. This is a 58 page book, containing 5607 words and 5 pictures. Search Inside is enabled for this title. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Download or read book Multi echelon Inventory Modeling and Supply Redesign written by Patrick James Scott and published by . This book was released on 2017 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many businesses struggle to optimize the flow of inventory and finished goods through existing plants and facilities. The integration of inventory costs, organizational processes, and changing business dynamics make it difficult to determine the optimal flow. This thesis examines the flow of raw materials and finished goods through the supply chain of a multi-national oilfield services company. We study a centralized inventory approach, assessed through heuristics, against the existing decentralized approach. Sensitivity analysis with regard to service level, and mode of transport strengthened the analysis. We show that demand aggregation and lead time are important factors in determining the upper echelon for a company's internal distribution model. Potential safety stock reduction is 2%, which is mainly due to the improved coordination for materials flowing to the final echelon in the supply chain. However, pipeline inventory increases by 12% as a result of longer lead times.

Download or read book The Design of Multi Product Multi Echelon Inventory Systems Using a Branch and Bound Algorithm written by Charles Edward Pinkus and published by . This book was released on 1971 with total page 151 pages. Available in PDF, EPUB and Kindle. Book excerpt: Large-scale distribution systems require a hierarchy of retail stores and warehouses to satisfy the demand of their customers. Given the maximum number of installations and their possible locations, the problem is to determine which installations to include in the design of the system and which products to stock at these installations. Demand for the products is assumed known and may be deterministic or stochastic. The objective is to find a solution to this design problem which minimizes the total (expected) discounted cost for the lifetime of the system. This problem has been formulated as a combinatorial optimization problem and solved by a branch-and-bound algorithm. The subproblems of the algorithm are tractable integer linear programs. Applications of this model to the design of other multi-use, multi-facility systems are briefly described. (Author).

Download or read book Introduction to Computational Optimization Models for Production Planning in a Supply Chain written by Stefan Voß and published by Springer Science & Business Media. This book was released on 2013-06-05 with total page 239 pages. Available in PDF, EPUB and Kindle. Book excerpt: An easy-to-read introduction to the concepts associated with the creation of optimization models for production planning starts off this book. These concepts are then applied to well-known planning models, namely mrp and MRP II. From this foundation, fairly sophisticated models for supply chain management are developed. Another unique feature is that models are developed with an eye toward implementation. In fact, there is a chapter that provides explicit examples of implementation of the basic models using a variety of popular, commercially available modeling languages.

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.