Optimization of total inventory cost and order fill rate in a supply chain using PSO

2013 ◽  
Vol 70 (9-12) ◽  
pp. 1533-1541 ◽  
Author(s):  
KyoungJong Park ◽  
Gyouhyung Kyung
Keyword(s):  
Supply Chain ◽  
Inventory Cost ◽  
Fill Rate ◽  
Total Inventory

scholarly journals Optimization Of Raw Material Inventory Costs In The Food Supply Chain Using Differential Evolution Algorithm

2018 ◽  
Vol 73 ◽  
pp. 13016
Author(s):  
Mara Huriga Priymasiwi ◽  
Mustafid
Keyword(s):  
Supply Chain ◽  
Differential Evolution ◽  
Food Industry ◽  
Differential Evolution Algorithm ◽  
Optimization Method ◽  
Raw Material ◽  
Inventory Cost ◽  
De Algorithm ◽  
Material Requirement ◽  
Total Inventory

The management of raw material inventory is used to overcome the problems occuring especially in the food industry to achieve effectiveness, timeliness, and high service levels which are contrary to the problem of effectiveness and cost efficiency. The inventory control system is built to achieve the optimization of raw material inventory cost in the supply chain in food industry. This research represents Differential Evolution (DE) algorithm as optimization method by minimizing total inventory based on amount of raw material requirement, purchasing cost, saefty stock and reorder time. With the population size, the parameters of mutation control, crossover parameters and the number of iterations respectively 80, 0.8, 0.5, 200. With the amount of safety stock at the company 7213.95 obtained a total inventory cost decrease of 39.95%. Result indicate that the use of DE algorithm help providein efficient amount, time and cost.

Review on Inventory Controlling of Building Materials Supply Chain from Uncertainty Demands in Civil Engineering

2012 ◽  
Vol 174-177 ◽  
pp. 3441-3443
Author(s):  
Bin Yang
Keyword(s):  
Supply Chain ◽  
Building Materials ◽  
Simulated Annealing Algorithm ◽  
Supply And Demand ◽  
Cost Models ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
Annealing Algorithm ◽  
The Difference

Inventory control is a necessary strategy that enterprises use to offset the effect of uncertainties in manufacturing, supply and demand. Normally, probability distribution is used to analyze the uncertainty problems, however, this analysis can’t be completed with inadequate data, resulting in an increase in inventory costs. The paper establishes inventory cost models of single supply chain member under uncertainty demands and applies Simulated Annealing Algorithm to imitate the models in 52 weeks to seek for the optimal speaking for amount and anew speaking for point so that compares the difference of supply chain total inventory cost and the sufficing rate of order for goods between independently and collaborated controlling strategy in supply chain, and in order to provide the necessary theoretical supports for the enterprises to establish supply chain partnerships and possibly improve the supply chain capability of providing external integration.

Inventory Control and Replenishment of Multi-Product Multi-Echelon Based on Time Cost Under JMI Environment

2013 ◽  
Vol 5 (2) ◽  
pp. 19-30
Author(s):  
Zhi Chen ◽  
Chao Ren ◽  
Ren-long Zhang ◽  
Mi-Yuan Shan
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Service Level ◽  
Control Model ◽  
Management Tool ◽  
Time Cost ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
Replenishment Strategy

Joint managed inventory is an advanced supply chain inventory management tool, which will effectively tackle the complicated problem between the inventory cost of supply chain and service level. The research on inventory model and its’ control under JMI environment is a hot issue at present. In this paper, the authors deeply discuss the question of the inventory time costs about the multi-product and multi-echelon control model and its’ replenishment strategy under JMI environment. With considering the foundation of JMI and time cost, the authors propose the multi-product multi-echelon inventory cost control model under time cost. Then formulate corresponding replenishment strategy. At last, through a numerical example, the authors discover that the multi-product multi-echelon joint inventory management based on time cost can effectively reduce the total inventory costs and improve the competitiveness of the entire supply chain.

Two-Echelon Inventory Stochastic Model of Supply Chain Based on Service Level Constraints

2014 ◽  
Vol 971-973 ◽  
pp. 2448-2451
Author(s):  
Da Li Jiang ◽  
Guang Fu Zhu ◽  
De Li
Keyword(s):  
Supply Chain ◽  
Stochastic Model ◽  
Service Level ◽  
Inventory Model ◽  
Inventory Level ◽  
Effective Algorithm ◽  
Inventory Cost ◽  
Total Inventory

The study on multi-echelon inventory of supply chain is becoming more and more important in E-business era. This paper proposes a two-echelon inventory model with one supplier and several retailers, in which a certain service level has to be satisfied and the goal is to minimize the total inventory cost. In addtion it puts forward an effective algorithm for this model to obtain the optimal replenishment period and inventory level of each supply chain node.

THE EFFECT OF LEAD-TIME ON THE SUPPLY CHAIN: THE MEAN VERSUS THE VARIANCE

2011 ◽  
Vol 10 (01) ◽  
pp. 175-185 ◽  
Author(s):  
XIN JAMES HE ◽  
XIAOBO XU ◽  
JACK C. HAYYA
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Inventory Systems ◽  
Time Variability ◽  
Inventory Cost ◽  
Safety Stock ◽  
Stochastic Inventory ◽  
Q Model ◽  
Total Inventory ◽  
The Mean

In a study on stochastic inventory systems, Chopra et al. (Decision Sciences35(1) (2004) 1–24) argue that decreasing lead time is the right lever if they want to cut inventories, not reducing lead time variability. According to Chopra et al., reducing the mean lead time, μ, is more important than reducing the lead time variance, σ2, to reduce total inventory cost via a reduced safety stock. This paper is a criticism of Chopra et al., where the optimal z was derived based upon a predetermined Q, instead of solving the optimal z and Q simultaneously in a (z, Q) inventory system. We argue that such an approach is inappropriate because the two decision variables, z and Q, are in general interdependent, and, moreover, reducing reorder point (safety stock), z, does not necessarily decrease the total inventory cost. We demonstrate by means of a truncated lead time (z, Q) model that it is lead time variability, not mean lead time, that affects the inventory policy and total supply chain cost.

Dynamic Planning Model for Port Iorn Ore Inventory

2013 ◽  
Vol 409-410 ◽  
pp. 1429-1432
Author(s):  
Gui Bin Xu ◽  
Xu Zhao ◽  
Xue Ting Li
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Management Strategy ◽  
Iron Ore ◽  
Planning Model ◽  
Inventory Cost ◽  
Dynamic Planning ◽  
Total Inventory ◽  
Inventory Strategy

Port inventory is a very important part in iron ore supply chain. Through the inventory management, we can get the best inventory strategy to minimize the total inventory cost. The inventory management of the port iron ore can get a reasonable and feasible inventory management strategy through the dynamic planning model.

scholarly journals Pengendalian Persediaan Produk Obat Herbal pada Permintaan Probabilistik Menggunakan Joint Economic Lot Size

2019 ◽  
Vol 8 (1) ◽  
pp. 39-46
Author(s):  
Rainisa Maini Heryanto ◽  
Yosi Thedi Setiawan ◽  
Vivi Arisandhy
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Lot Size ◽  
Inventory Cost ◽  
Integration Model ◽  
Joint Economic Lot Size ◽  
Calculation Process ◽  
Total Inventory ◽  
The Difference ◽  
Is Integration

Integration in supply chain is an important factor to consider. Good integration between entity in supply chain can give some advantages from minimize cost to competitiveness between supply chain.  Company X is manufacturer of herbs medicine which has single distributor to sell the product. Currently, manufacturer and distributor have their inventory control policies and there is no coordination among echelon. It causes the difference number of production lot from manufacturer and the number of order from distributor, consequently total inventory cost become expensive.This research will propose Joint Economic Lot Size (JELS) method that can integrate these two echelons and will give the minimum total inventory cost. The proposed JELS method is integration between Cardenas-Barron model about EPQ backorder and Ben-Daya and Hariga model about integration model between single supplier and single consumer. Calculation process begin with forecasting demand, calculation of actual inventory control at echelon manufacturer and distributor, and calculation of proposed method. The result of calculation process show that total actual inventory cost is 5.500.371,476 IDR/month and the proposed method give 4.604.766,665 IDR/month. The proposed method can give saving about 895.604,811 IDR/month or 16,28%.                      Key words: cost, integration, JELS, inventory

Inventory model in a four-echelon integrated supply chain: modeling and optimization

2017 ◽  
Vol 12 (4) ◽  
pp. 739-762 ◽  
Author(s):  
Abolfazl Gharaei ◽  
Seyed Hamid Reza Pasandideh ◽  
Alireza Arshadi Khamseh
Keyword(s):  
Supply Chain ◽  
Nonlinear Model ◽  
Interior Point ◽  
Inventory Model ◽  
Inventory Cost ◽  
Content Type ◽  
Multi Stage ◽  
Total Inventory ◽  
Integrated Supply Chain ◽  
Stochastic Constraints

Purpose The main purpose is to minimize the total inventory cost of chain, whereas the stochastic constraints are satisfied. In other words, the goal is to find optimum agreed stockpiles and period length for products to minimize the total inventory cost of the chain while the stochastic constraints are fulfilled. Design/methodology/approach This paper designs and optimizes an integrated inventory model in a four-echelon supply chain that contains a supplier, a producer, a wholesaler and multiple retailers. All four levels agree with each other to make an integrated inventory system. Products in this model have a multi-stage production process, and the model is bounded by multiple stochastic constraints. The problem model is nonlinear and large. So, the interior point method as an effective algorithm is used for solving the recent convex nonlinear model. Two numerical examples are solved to demonstrate the application of this methodology and to evaluate the performance of the proposed approach. Findings The findings showed the model is applicable for real-world supply chain problems in the cases that echelons are going to do executive external integration. Also, the Interior Point algorithm has a satisfactory performance and a high efficiency in terms of optimum solution for solving nonlinear and large models. Originality/value The authors designed and optimized the inventory cost in a four-level integrated supply chain in stochastic conditions. The new decision variables, number of chain levels, multi-products, stochastic constraints and multi-stage products in four-level integrated supply chain are other novelties of this paper. The authors provided an efficient algorithm for solving a large-scale and nonlinear model in this research, too.

Implementation of Vendor Managed Inventory (VMI) in Managing Intra Ocular Lenses (IOL) in Eye Care Organization

2015 ◽  
Vol 2 (9) ◽  
pp. 1 ◽  
Author(s):  
Nancy Sharma
Keyword(s):  
Supply Chain ◽  
Operational Efficiency ◽  
Care Organization ◽  
Healthcare Industry ◽  
Vendor Managed Inventory ◽  
Eye Care ◽  
Inventory Cost ◽  
Innovative Strategies ◽  
Industry Hospital

Nowadays healthcare has a completely changed scenario as compared with the early 90’s. As more and more profit generating hospitals are coming in the industry, hospital and healthcare is no longer remains a charitable or philanthropically act. So to be remain in the market and compete within hospitals need to now focus on the different and innovative strategies in every aspect. Supply chain and operations is one of the important key of any organization which directly impact on business and revenue. Vendor Managed inventory is not a new concept but it is not efficiently utilized in service and healthcare industry as of now. Some retail and automobile industries has utilized the concept and also able to reduce the inventory cost with manageable position of stock out and over stocking position. As hospital’s key functioning is to deal with life of patients on day to day so position of material need to be necessarily on right time and right place. This paper is based on the insight of the application of vendor managed inventory in the management of inventory for the IOL (Intra ocular lenses) that is used for the surgeries in the eye hospital. We will also study the questionnaire on the acceptability of the concept of vendor managed inventory in the hospital that will help to assess the acceptability of VMI in hospital and healthcare industry. Also a framework matrix is designed to understand the relation of VMI with the revenue earning and smoothening of operational efficiency.

scholarly journals Determination of Network Configuration Considering Inventory Cost in a Supply Chain

2014 ◽  
Vol 12 (4) ◽  
pp. 674-683 ◽  
Author(s):  
N.M. Hernández González ◽  
A. Álvarez Socarrás ◽  
M. Mata Pérez
Keyword(s):  
Supply Chain ◽  
Network Configuration ◽  
Inventory Cost
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