scholarly journals Optimization of Raw Material Inventory Control CV. Dirga Eggtray Pinrang Using Probabilistic Model with Backorder and Lostsales Condition

2022 ◽  
Vol 18 (2) ◽  
pp. 261-273
Author(s):  
Aprizal Resky ◽  
Aidawayati Rangkuti ◽  
Georgina M. Tinungki

This research discusses about the comparison of raw material inventory control CV. Dirga Eggtray Pinrang. It starts with forecasting inventory for the next 12 periods using variations of the time series forecasting method, where the linear regression method provides accurate forecasting results with a Mean Absolute Percentage Error (MAPE) value of 1,9371%. The probabilistic models of inventory control used are the simple probabilistic model, Continuous Review System (CRS) model, and Periodic Review System (PRS) model. The CRS model with backorder condition is a model that provides the minimum cost of Rp. 969.273.706,20 per year compared to another probabilistic model with the largest difference of Rp. 1.291.814,95 per year, with the optimum number of order kg, reorder level kg, and safety stock kg.

2013 ◽  
Vol 2013 ◽  
pp. 1-8
Author(s):  
Weili Xue ◽  
Xiaolin Xu ◽  
Ruxian Wang

We study the joint inventory and sales effort management problems of a retailer in a broad context and investigate the optimal policies for a single item, periodic-review system. In each period, the demand is uncertain depending on the sales effort level exerted by the retailer, which incurs an associated cost. The retailer’s objective is to find a joint optimal inventory replenishment and sales effort policy to maximize the discounted profit over a finite horizon. We first consider a basic setting with zero setup cost and no batch ordering, under which the base stock list sales effort policy is optimal. Two extensions are then investigated: (1) the case with nonzero setup cost, under which we show that(s,S,e)policy is optimal; and (2) the case with batch ordering, under which we prove the optimality of the(r,Nq,e)policy. Finally, we conduct numerical studies to provide additional managerial insights.


2017 ◽  
Vol 49 ◽  
pp. 375-393 ◽  
Author(s):  
Yi Tao ◽  
Loo Hay Lee ◽  
Ek Peng Chew ◽  
Gang Sun ◽  
Vincent Charles

2006 ◽  
Author(s):  
James R. Freeland ◽  
Robert Landel ◽  
Elliott N. Weiss

2018 ◽  
Vol 2018 ◽  
pp. 1-27 ◽  
Author(s):  
Claudio Araya-Sassi ◽  
Pablo A. Miranda ◽  
Germán Paredes-Belmar

We studied a joint inventory location problem assuming a periodic review for inventory control. A single plant supplies a set of products to multiple warehouses and they serve a set of customers or retailers. The problem consists in determining which potential warehouses should be opened and which retailers should be served by the selected warehouses as well as their reorder points and order sizes while minimizing the total costs. The problem is a Mixed Integer Nonlinear Programming (MINLP) model, which is nonconvex in terms of stochastic capacity constraints and the objective function. We propose a solution approach based on a Lagrangian relaxation and the subgradient method. The decomposition approach considers the relaxation of different sets of constraints, including customer assignment, warehouse demand, and variance constraints. In addition, we develop a Lagrangian heuristic to determine a feasible solution at each iteration of the subgradient method. The proposed Lagrangian relaxation algorithm provides low duality gaps and near-optimal solutions with competitive computational times. It also shows significant impacts of the selected inventory control policy into total system costs and network configuration, when it is compared with different review period values.


Author(s):  
Philippe Cambos ◽  
Guy Parmentier

During ship life, operating conditions may change, tanker may be converted into FPSO, and flag requirements may be modified. Generally these modifications have few impacts on existing structures; flag requirements only rarely are to be applied retroactively. Nevertheless in some cases modifications of operating condition may induce considerable consequences, making in the worst cases impossible any reengineering. For example converting a common tanker, built with plain steel of grade A into an Offshore Floating Unit able operating in cold region, may require a grade change corresponding to a grade B. It is obviously meaningless to replace all material just because material certificates. Steels used by shipyards have to fulfill Classification society’s requirements dealing with mechanical strength; generally shipbuilding corresponds to a small part of steelmaker’s production. For this reason steelmakers are reluctant to produce steels with mechanical properties corresponding exactly to the minima required. They generally deliver steels already in stock, with higher mechanical characteristics than required. In this case it can be taken advantage of this common practice. In order to demonstrate that the material fulfill the requirements of grade B it has been decided to adopt a statistic approach. At this stage there are two main issues, the first one is that it is needed to provide evidences that the actual material Charpy V characteristics fulfill the requirements of grade B; the second one is to provide these evidences with a minimum testing. To assess this assumption a random check has been carried out. Different probabilistic model have been tested in order to check common approaches and probabilistic model based on physical considerations. In the paper the main assumptions for estimating the minimum Charpy value main assumption in the probabilistic models are recalled, the behavior of empirical sample is examined, the parameters of probability laws fitting the empirical distribution and definitely as accuracy of probability law parameters determination is not perfect with a finite number of specimens the uncertainty in the determination of parameters is taken into account with confidence limits. According to the selected probabilistic model the minimum value corresponds to an acceptable probability of failure, taking into account the target confidence level, or is independent of any acceptable probability of failure and is defined with the same confidence level. At the end it is concluded that a random check with a data treatment assuming a random distribution of Charpy V test results distributed according to a Weibull probability law of the minimum allows providing evidences that with a sufficient confidence level the steel used for the considered structure fulfill the requirements of the new operating conditions.


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