Inventory management in food companies with statistically dependent demand

2016 ◽  
Vol 29 (4) ◽  
pp. 450-485 ◽  
Author(s):  
Fernando Rojas ◽  
Victor Leiva
Keyword(s):  
Inventory Management ◽  
Raw Materials ◽  
Moving Average ◽  
Differential Evolution Algorithm ◽  
Statistical Dependence ◽  
Food Services ◽  
Inventory Models ◽  
Content Type ◽  
Dependent Demand ◽  
Dependence Structures

Purpose The objective of this paper is to propose a methodology based on random demand inventory models and dependence structures for a set of raw materials, referred to as “components”, used by food services that produce food rations referred to as “menus”. Design/methodology/approach The contribution margins of food services that produce menus are optimised using random dependent demand inventory models. The statistical dependence between the demand for components and/or menus is incorporated into the model through the multivariate Gaussian (or normal) distribution. The contribution margins are optimised by using probabilistic inventory models for each component and stochastic programming with a differential evolution algorithm. Findings When compared to the non-optimised system previously used by the company, the (average) expected contribution margin increases by 18.32 per cent when using a continuous review inventory model for groceries and uniperiodic models for perishable components (optimised system). Research limitations/implications The multivariate modeling can be improved by using (a) other non-Gaussian (marginal) univariate probability distributions, by means of the copula method that considers more complex statistical dependence structures; (b) time-dependence, through autoregressive time-series structures and moving average; (c) random modelling of lead-time; and (d) demands for components with values equal to zero using zero-inflated or adjusted probability distribution. Practical implications Professional management of the supply chain allows the users to register data concerning component identification, demand, and stock levels to subsequently be used with the proposed methodology, which must be implemented computationally. Originality/value The proposed multivariate methodology allows it to describe demand dependence structures through inventory models applicable to components used to produce menus in food services.

State-of-the-art literature review on inventory models for perishable products

2018 ◽  
Vol 15 (3) ◽  
pp. 306-346 ◽  
Author(s):  
Vaibhav Chaudhary ◽  
Rakhee Kulshrestha ◽  
Srikanta Routroy
Keyword(s):  
Inventory Management ◽  
Systemic Review ◽  
Current Status ◽  
Future Research ◽  
Inventory Models ◽  
Research Gaps ◽  
Content Type ◽  
Perishable Items ◽  
Perishable Inventory ◽  
The Future

PurposeThe purpose of this paper is to review and analyze the perishable inventory models along various dimensions such as its evolution, scope, demand, shelf life, replenishment policy, modeling techniques and research gaps.Design/methodology/approachIn total, 418 relevant and scholarly articles of various researchers and practitioners during 1990-2016 were reviewed. They were critically analyzed along author profile, nature of perishability, research contributions of different countries, publication along time, research methodologies adopted, etc. to draw fruitful conclusions. The future research for perishable inventory modeling was also discussed and suggested.FindingsThere are plethora of perishable inventory studies with divergent objectives and scope. Besides demand and perishable rate in perishable inventory models, other factors such as price discount, allow shortage or not, inflation, time value of money and so on were found to be combined to make it more realistic. The modeling of inventory systems with two or more perishable items is limited. The multi-echelon inventory with centralized decision and information sharing is acquiring lot of importance because of supply chain integration in the competitive market.Research limitations/implicationsOnly peer-reviewed journals and conference papers were analyzed, whereas the manuals, reports, white papers and blood-related articles were excluded. Clustering of literature revealed that future studies should focus on stochastic modeling.Practical implicationsStress had been laid to identify future research gaps that will help in developing realistic models. The present work will form a guideline to choose the appropriate methodology(s) and mathematical technique(s) in different situations with perishable inventory.Originality/valueThe current review analyzed 419 research papers available in the literature on perishable inventory modeling to summarize its current status and identify its potential future directions. Also the future research gaps were uncovered. This systemic review is strongly felt to fill the gap in the perishable inventory literature and help in formulating effective strategies to design of an effective and efficient inventory management system for perishable items.

ProdVal – production challenges!

2012 ◽  
Vol 2 (8) ◽  
pp. 1-5
Author(s):  
Vikrant Apoorva Kulkarni ◽  
Komal Chopra ◽  
Krishnakant Roy ◽  
Raji Vamadevan ◽  
Sajeesh Hamsa
Keyword(s):  
Inventory Management ◽  
Operations Management ◽  
Production Management ◽  
Raw Materials ◽  
Production Capacity ◽  
Subject Area ◽  
Small Scale ◽  
Good Growth ◽  
List Type ◽  
Content Type

Subject area Operations management. Study level/applicability Management post graduate and corporate executives. Case overview ProdVal Flow Controls Pvt Ltd was company in the SME sector in India. The company focused on quality products and timely delivery. The major challenge for ProdVal was increasing their production capacity. They had no control over their existing suppliers resulting in delay in raw materials delivery. Retention of vendors had an effect on inventory carrying cost. The company had limited production facilities and the workers were outsourced. The company operated with unskilled workers. The case presents the various issues faced by the company based on which strategies to practice and plan the company's future plans could be designed. This is a disguised case and all excerpts from interviews have been anonymized. Expected learning outcomes This case study will give an insight to students to understand how inventory management; impacts production. It even gives an idea about how ProdVal has used the strategy of outsourcing of technology and labour and maintained a good growth rate. Social implications - Production-related outsourcing. Production management in small scale industry. Organization structure of a manufacturing unit. Concept of outsourcing HR and technology in an SME. Supplementary materials Teaching notes are available, please consult your librarian to access.

scholarly journals An econophysics approach to forecast bulk shipbuilding orderbook: an application of Newton’s law of gravitation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Quazi Mohammed Habibus Sakalayen ◽  
Okan Duru ◽  
Enna Hirata
Keyword(s):  
Raw Materials ◽  
Moving Average ◽  
Research Result ◽  
Bulk Carrier ◽  
Content Type ◽  
Predictive Variables ◽  
Smooth Flow ◽  
Analysis Technique ◽  
Average Analysis ◽  
Forecasting Method

Purpose Bulk shipping mostly facilitates the smooth flow of raw materials around the globe. Regardless, forecasting a bulk shipbuilding orderbook is a seldom researched domain in the academic arena. This study aims to pioneer an econophysics approach coupled with an autoregressive data analysis technique for bulk shipbuilding order forecasting. Design/methodology/approach By offering an innovative forecasting method, this study provides a comprehensive but straightforward econophysics approach to forecast new shipbuilding order of bulk carrier. The model has been evaluated through autoregressive integrated moving average analysis, and the outcome indicates a relatively stable good fit. Findings The outcomes of the econophysics model indicate a relatively stable good fit. Although relevant maritime data and its quality need to be improved, the flexibility in refining the predictive variables ensure the robustness of this econophysics-based forecasting model. Originality/value By offering an innovative forecasting method, this study provides a comprehensive but straightforward econophysics approach to forecast new shipbuilding order of bulk carrier. The research result helps shipping investors make decision in a capital-intensive and uncertainty-prone environment.

Supply issues in ACPL – an electrical manufacturing company

2012 ◽  
Vol 2 (8) ◽  
pp. 1-12
Author(s):  
Hari Narain Singh
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Operations Management ◽  
Manufacturing Systems ◽  
Raw Materials ◽  
Subject Area ◽  
Power Utility ◽  
Content Type ◽  
Marketing Function ◽  
Manufacturing Company

Subject area Supply chain management. Study level/applicability The case is suitable for post graduates in management, and for those managing small sector supply and manufacturing systems. Case overview ACPL is an organisation which moved from trading to manufacturing a technology product instrument transformers (ITs) for power utility companies for 11 years, competing with the best in industry, reducing internal costs, and modernising the supply chain. ACPL was started as a trading organisation in electrical items in Delhi by Munish Kumar, an engineer by profession in 2001. In 2004 he ventured into manufacturing, which expanded in two locations in Ghaziabad, NCR Delhi. Later his two sons, engineer and management graduate, respectively, joined the organisation. In less than a decade, by 2007, ACPL had grown to be a private limited organisation. ACPL manufactures ITs required by power boards and companies for conversion and usage of high voltage (11 kV/33 kV) transmitted power into 220 V single phase/440 V three phase power. From tender/enquiry through manufacturing to inspection and despatch takes a long supply chain cycle time holding space as well as inventory. An interview with the chairman of ACPL in the case highlights issues affecting its margins and growth. The long process to delivery time may be in vogue in this type of industry but this holds up a huge inventory. The company management has been working to resolve this crisis along with an urgent need to grow in a competitive environment. The problem is being addressed. Expected learning outcomes This case study should help students to understand the concept of the supply chain and supply cycle, in a manufacturing company in particular. It has been found that students understand the supply chain as part of the marketing function dealing with finished stocks, warehousing and delivery to end customers as per agreements, and arranging payments from customers. The supply chain also deals with in bound materials management. Raw materials planning, purchasing, inventory management are crucial for effective business operations management in any organisation. Supplementary materials Teaching notes are available; please contact your librarian for access.

A systematic literature review of healthcare supply chain and implications of future research

2019 ◽  
Vol 13 (4) ◽  
pp. 405-435 ◽  
Author(s):  
Anuj Dixit ◽  
Srikanta Routroy ◽  
Sunil Kumar Dubey
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Inventory Management ◽  
Cold Chain ◽  
Future Research ◽  
Research Papers ◽  
Content Type ◽  
Drug Manufacturing ◽  
Customer Training

Purpose This paper aims to review the healthcare supply chain (HSC) literature along various areas and to find out the gap in it. Design/methodology/approach In total, 143 research papers were reviewed during 1996-2017. A critical review was carried out in various dimensions such as research methodologies/data collection method (empirical, case study and literature review) and inquiry mode of research methodology (qualitative, quantitative and mixed), country-specific, targeted area, research aim and year of publication. Findings Supply chain (SC) operations, performance measurement, inventory management, lean and agile operation, and use of information technology were well studied and analyzed, however, employee and customer training, tracking and visibility of medicines, cold chain management, human resource practices, risk management and waste management are felt to be important areas but not much attention were made in this direction. Research limitations/implications Mainly drug and vaccine SC were considered in current study of HSC while SC along healthcare equipment and machine, hospitality and drug manufacturing related papers were excluded in this study. Practical implications This literature review has recognized and analyzed various issues relevant to HSC and shows the direction for future research to develop an efficient and effective HSC. Originality/value The insight of various aspects of HSC was explored in general for better and deeper understanding of it for designing of an efficient and competent HSC. The outcomes of the study may form a basis to decide direction of future research.

Application of lean practices in small and medium-sized food enterprises

2013 ◽  
Vol 116 (1) ◽  
pp. 125-141 ◽  
Author(s):  
Manoj Dora ◽  
Dirk Van Goubergen ◽  
Maneesh Kumar ◽  
Adrienn Molnar ◽  
Xavier Gellynck
Keyword(s):  
Food Processing ◽  
Lean Manufacturing ◽  
Raw Materials ◽  
Current Status ◽  
Food Sector ◽  
Statistical Process ◽  
Content Type ◽  
Lean Practices ◽  
The Status ◽  
Manufacturing Techniques

Purpose – Recent literature emphasizes the application of lean manufacturing practices to food processing industries in order to improve operational efficiency and productivity. Only a very limited number of studies have focused on the implementation of lean manufacturing practices within small and medium-sized enterprises (SMEs) operating in the food sector. The majority of these studies used the case study method and concentrated on individual lean manufacturing techniques geared towards resolving efficiency issues. This paper aims to analyze the status of the lean manufacturing practices and their benefits and barriers among European food processing SMEs. Design/methodology/approach – A structured questionnaire was developed to collect data. A total of 35 SMEs' representatives, mostly CEOs and operations managers, participated in the survey. The study investigated the role of two control variables in lean implementation: size of the company and country of origin. Findings – The findings show that lean manufacturing practice deployment in food processing SMEs is generally low and still evolving. However, some lean manufacturing practices are more prevalent than others; e.g. flow, pull and statistical process control are not widely used by the food processing SMEs, whereas total productive maintenance, employee involvement, and customer association are more widespread. The key barriers encountered by food SMEs in the implementation of lean manufacturing practices result from the special characteristics of the food sector, such as highly perishable products, complicated processing, extremely variable raw materials, recipes and unpredictable demand. In addition, lack of knowledge and resources makes it difficult for food processing SMEs to embark on the lean journey. Originality/value – The gap in the literature regarding the application of lean manufacturing in the food sector is identified and addressed in this study. The originality of this paper lies in analyzing the current status of the use of lean manufacturing practices among food SMEs in Europe and identifying potential barriers.

scholarly journals Modeling the Supply Process Using the Application of Selected Methods of Operational Analysis

2017 ◽  
Vol 7 (1) ◽  
pp. 50-54 ◽  
Author(s):  
Mária Chovancová ◽  
Vladimír Klapita
Keyword(s):  
Inventory Management ◽  
Economic Efficiency ◽  
Raw Materials ◽  
Service Level ◽  
Effective Management ◽  
Operational Analysis ◽  
Intermediate Products ◽  
The Subject

AbstractSupply process is one of the most important enterprise activities. All raw materials, intermediate products and products, which are moved within enterprise, are the subject of inventory management and by their effective management significant improvement of enterprise position on the market can be achieved. For that reason, the inventory needs to be managed, monitored, evaluated and affected. The paper deals with utilizing the methods of the operational analysis in the field of inventory management in terms of achieving the economic efficiency and ensuring the particular customer’s service level as well.

The international strength of the euro will grow

2021 ◽  
Keyword(s):  
Euro Area ◽  
Financial Services ◽  
Raw Materials ◽  
Domestic Demand ◽  
Content Type ◽  
The Us ◽  
Us Dollar ◽  
Strategic Autonomy ◽  
Geopolitical Risks ◽  
The Eu

Significance The proposals identified areas where the euro could potentially become more dominant, such as the issuance of green bonds, digital currencies, and international trade in raw materials and energy. Ambitions to enhance the international leverage of the euro are being driven by the aim to strengthen EU strategic autonomy amid rising geopolitical risks. Impacts Developing its digital finance sector would be an opportunity for the EU to enhance its strategic autonomy in financial services. Challenging the US dollar would require the euro-area to rebalance its economy away from foreign to domestic demand. Member state division will prevent the economic reconfiguration the euro-area needed to make the euro a truly global currency.

Vegan cheeses vs processed cheeses – traceability issues and monitoring countermeasures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moawiya A. Haddad ◽  
Sharaf S. Omar ◽  
Salvatore Parisi
Keyword(s):  
Food Supply ◽  
Design Methodology ◽  
Raw Materials ◽  
Production Method ◽  
Animal Origin ◽  
Information Load ◽  
Supply Chain Risk ◽  
Supply Networks ◽  
Content Type ◽  
Traceability System

PurposeThe purpose of this study comes from the need of defining improved durability values and the realization of a good traceability management for selected vegan cheeses has suggested the comparison between a processed cheese and its analogous version without animal-origin raw materials. The durability should be studied at a well-defined temperature, probably agreed among the food producer and the food processor. In addition, the traceability system should consider many components and related suppliers.Design/methodology/approachA supply chain risk assessment analysis has been carried out with relation to two different products: an analogue cheese and a vegan cheese-like preparation. Raw materials and ingredients have been evaluated (production method and origin; geographical identification), with the aim of identifying simplified food.FindingsAn assessment of food supply networks has been carried out. In the first situation (analogue cheeses), the ingredient “cheeses” shows an important complexity: five suppliers with a related six-interconnection hub. On the other side, vegan cheeses are obtained from 11 ingredients (a challenging hub); four of them may be produced from 2–5 components of different origin (five total hubs). Tested processed cheeses are represented by means of a linear food supply network with two hubs (cheeses and “arrival” show degrees 6 and 9, respectively). Networks concerning vegan cheeses include five different hubs: four complex raw materials (degree: 2, 3, 4 and 5) and the “arrival” step (degree: 12).Originality/valueThe information load of vegan cheeses (two hubs, degrees >> average degree) appears high if compared with processed cheeses (two hubs), although the complexity of networks appears similar. Vegan cheeses may seem technologically simpler than processed cheeses and be sometimes questioned because of important traceability issues. Adequate traceability countermeasures in terms of preventive monitoring actions should be recommended when speaking of vegan cheeses. Anyway, a centralized manager would be always required.

DEMAND CATEGORIZATION DAN INVENTORY MANAGEMENT PRODUK OBAT: STUDI KASUS PADA SUATU TOKO OBAT DI KOTA SOLOK, SUMATERA BARAT

2020 ◽  
Vol 4 (2) ◽  
Author(s):  
Inna Kholidasari ◽  
◽  
Lestari Setiawati ◽  
Ramanda Ramanda ◽  
◽  
...  
Keyword(s):  
Inventory Management ◽  
Control Method ◽  
Moving Average ◽  
Drug Group ◽  
Linear Regression Method ◽  
Lot Size ◽  
Drug Store ◽  
Control Drug ◽  
West Sumatra ◽  
Abc Method

Abstract This research raises the problem of controlling the inventory of medicinal products. The case study was conducted at a drug store in the city of Solok, West Sumatra, where the drug store still has stock out and over stock of various types of drugs it manages. The purpose of this study was to control drug supplies that have a high demand value. Demand data for the period February-April 2020 are grouped with demand value criteria using the Pareto Classification ABC Method. From the demand categorization process, 45 types of drugs were included in A group, which means that this drug group provides a large revenue contribution for the drugstore. Thus, the type A drug group needs more attention from drug store manager in terms of controlling drug supplies. Furthermore, forecasting is carried out for drugs belonging to A drugs group using the Moving Average Method, the Single Exponential Smoothing Method and the Linear Regression Method. The inventory control method adopted is the Economic Order Quantity (EOQ) method. The results showed that the lot size of each type of drug per order ranged from 10-122 units with a safety stock ranging from 5-50 units of product. Then the reorder points obtained ranged from 8-81 units. With the control of drug supplies in place, it is hoped that the stock out and over stock that occurs in drug stores can be minimized.

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