A Solution for the Intractable Inventory Model When Both Demand and Lead Time are Stochastic
A Solution for the Intractable Inventory Model When Both Demand and Lead Time are Stochastic

Author: Terry P. Harrison

Publisher:

Published: 2008

Total Pages: 27

ISBN-13:

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We consider the reorder point, order quantity inventory model where the demand, D, and the lead time, L, are independently and identically distributed (iid) randiom variables. This model is analytically intractable because of order crossover. However, we show how to resolve the intractability by empirical means, for example, by simulation and regression relationships. Using a normal approximation, we show how to obtain regression equations for the optimal cost and the optimal policy parameters (here the order quantity and the safety stock factor) in terms of the problem parameters (ordering cost per order, holding cost per unit per unit time, shortage cost per unit, the standard deviation of demand, and the standard deviation of lead time).

Applied Simulation and Optimization 2
Applied Simulation and Optimization 2

Author: Miguel Mujica Mota

Publisher: Springer

Published: 2017-05-18

Total Pages: 286

ISBN-13: 3319558102

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Building on the author’s earlier Applied Simulation and Optimization, this book presents novel methods for solving problems in industry, based on hybrid simulation-optimization approaches that combine the advantages of both paradigms. The book serves as a comprehensive guide to tackling scheduling, routing problems, resource allocations and other issues in industrial environments, the service industry, production processes, or supply chains and aviation. Logistics, manufacturing and operational problems can either be modelled using optimization techniques or approaches based on simulation methodologies. Optimization techniques have the advantage of performing efficiently when the problems are properly defined, but they are often developed through rigid representations that do not include or accurately represent the stochasticity inherent in real systems. Furthermore, important information is lost during the abstraction process to fit each problem into the optimization technique. On the other hand, simulation approaches possess high description levels, but the optimization is generally performed through sampling of all the possible configurations of the system. The methods explored in this book are of use to researchers and practising engineers in fields ranging from supply chains to the aviation industry.

Inventory Management with Stochastic Lead Times
Inventory Management with Stochastic Lead Times

Author: Kumar Muthuraman

Publisher:

Published: 2013

Total Pages: 34

ISBN-13:

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This article analyzes a continuous time back-ordered inventory system with stochastic demand and stochastic delivery lags for placed orders. This problem in general has an infinite dimensional state space and is hence intractable. We first obtain the set of minimal conditions for reducing such a system's state space to one-dimension and show how this reduction is done. Next, by modeling demand as a diffusion process, we reformulate the inventory control problem as an impulse control problem. We simplify the impulse control problem to a Quasi-Variation Inequality (QVI). Based on the QVI formulation, we obtain the optimality of the (s, S) policy and the limiting distribution of the inventory level. We also obtain the long run average cost of such an inventory system. Finally, we provide a method to solve the QVI formulation. Using a set of computational experiments, we show that significant losses are incurred in approximating a stochastic lead time system with a fixed lead time system, thereby highlighting the need for such stochastic lead time models. We also provide insights into the dependence of this value loss on various problem parameters.

Stochastic optimization methods for supply chains with perishable products
Stochastic optimization methods for supply chains with perishable products

Author: Michael A. Völkel

Publisher: Logos Verlag Berlin GmbH

Published: 2020-07-03

Total Pages: 119

ISBN-13: 3832551077

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This book deals with inventory systems in supply chains that face risks that could render products unsalable. These risks include possible cooling system failures, transportation risks, packaging errors, handling errors, or natural quality deterioration over time like spoilage of food or blood products. Classical supply chain inventory models do not regard these risks. This thesis introduces novel cost models that consider these risks. It also analyzes how real-time tracking with RFID sensors and smart containers can contribute to decision making. To solve these cost models, this work presents new solution methods based on dynamic programming. In extensive computational studies both with experimental as well as real-life data from large players in the retailer industry, the solution methods prove to lead to substantially lower costs than existing solution methods and heuristics.

Decision Sciences
Decision Sciences

Author: Raghu Nandan Sengupta

Publisher: CRC Press

Published: 2016-11-30

Total Pages: 936

ISBN-13: 1351727400

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This handbook is an endeavour to cover many current, relevant, and essential topics related to decision sciences in a scientific manner. Using this handbook, graduate students, researchers, as well as practitioners from engineering, statistics, sociology, economics, etc. will find a new and refreshing paradigm shift as to how these topics can be put to use beneficially. Starting from the basics to advanced concepts, authors hope to make the readers well aware of the different theoretical and practical ideas, which are the focus of study in decision sciences nowadays. It includes an excellent bibliography/reference/journal list, information about a variety of datasets, illustrated pseudo-codes, and discussion of future trends in research. Covering topics ranging from optimization, networks and games, multi-objective optimization, inventory theory, statistical methods, artificial neural networks, times series analysis, simulation modeling, decision support system, data envelopment analysis, queueing theory, etc., this reference book is an attempt to make this area more meaningful for varied readers. Noteworthy features of this handbook are in-depth coverage of different topics, solved practical examples, unique datasets for a variety of examples in the areas of decision sciences, in-depth analysis of problems through colored charts, 3D diagrams, and discussions about software.

Journal of the Transportation Research Forum
Journal of the Transportation Research Forum

Author:

Publisher:

Published: 1991

Total Pages: 754

ISBN-13:

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Contains refereed papers, printed in full, that are presented at the TRF Annual Forum. Summaries of other events, presentations, and discussions that occur at the Forum are found in: Transportation Research Forum. Proceedings of the Transportation Research Forum; called 1991- : Transportation Research Forum. Meeting. Proceedings of the ... Annual Meeting (1991).

Smart Manufacturing
Smart Manufacturing

Author: Masoud Soroush

Publisher: Elsevier

Published: 2020-08-04

Total Pages: 530

ISBN-13: 0128203811

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Research efforts in the past decade have led to considerable advances in the concepts and methods of smart manufacturing. Smart Manufacturing: Applications and Case Studies includes information about the key applications of these new methods, as well as practitioners’ accounts of real-life applications and case studies. Written by thought leaders in the field from around the world, Smart Manufacturing: Applications and Case Studies is essential reading for graduate students, researchers, process engineers and managers. It is complemented by a companion book titled Smart Manufacturing: Concepts and Methods, which describes smart manufacturing methods in detail. Includes examples of applications of smart manufacturing in process industries Provides a thorough overview of the subject and practical examples of applications through well researched case studies Offers insights and accounts of first-hand experiences to motivate further implementations of the key concepts of smart manufacturing

Strategic Safety Stocks in Supply Chains
Strategic Safety Stocks in Supply Chains

Author: Stefan Minner

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 221

ISBN-13: 3642582966

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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.

Management Science
Management Science

Author:

Publisher:

Published: 1992

Total Pages: 500

ISBN-13:

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Issues for Feb. 1965-Aug. 1967 include Bulletin of the Institute of Management Sciences.

Inventory Management and Production Planning and Scheduling
Inventory Management and Production Planning and Scheduling

Author: Edward A. Silver

Publisher: Wiley

Published: 1998-01-23

Total Pages: 0

ISBN-13: 9780471119470

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This is a revision of a classic which integrates managerial issues with practical applications, providing a broad foundation for decision-making. It incorporates recent developments in inventory management, including Just-in-Time Management, Materials Requirement Planning, and Total Quality Management.