On the Cost of Pooling in Multiple-Location Inventory Systems

2012 ◽  
Author(s):  
Ho-Yin Mak ◽  
Zuo-Jun Max Shen
Keyword(s):  
Inventory Systems ◽  
Multiple Location ◽  
The Cost

Comments on Two Models for Operating Two-Warehouse Inventory Systems with Deteriorating Items and Inflationary Effects

2011 ◽  
Vol 2 (2) ◽  
pp. 1-21
Author(s):  
Huachun Xiong ◽  
Jinxing Xie ◽  
Bo Niu
Keyword(s):  
Infinite Horizon ◽  
Planning Horizon ◽  
Inventory Systems ◽  
Traditional Model ◽  
Present Value ◽  
Total Cost ◽  
Demand Rate ◽  
Replenishment Cycle ◽  
The Cost ◽  
Infinite Planning Horizon

This paper deals with the two-warehouse partial backlogging inventory problems under inflation for a deteriorating product with a constant demand rate over an infinite horizon. In contrast to the traditional model in which each replenishment cycle starts with an instant replenishment and ends with shortages, an alternative model is proposed in recent literature in which each cycle starts with shortages. It is proven to be less expensive to operate than the traditional model in terms of the present value of the cost per unit time. The present paper points out that the criteria of minimizing the cost per unit time is unreasonable when the inflationary effect is taken into consideration, and instead, the criteria of minimizing the present value of the total cost over the whole infinite planning horizon should be used. The objective functions of these two models are changed and proved that the model with shortages at the start of the cycle is less expensive to operate than the traditional model in terms of the present value of the total cost, but the optimal solutions of the models minimizing the cost per unit time indicate significantly higher total costs.

scholarly journals On the Use of Importance Measures in the Reliability of Inventory Systems, Considering the Cost

2020 ◽  
Vol 10 (21) ◽  
pp. 7942
Author(s):  
Liwei Chen ◽  
Meng Kou ◽  
Songwei Wang
Keyword(s):  
Inventory Control ◽  
Inventory Management ◽  
Inventory Systems ◽  
Optimization Analysis ◽  
Proposed Model ◽  
Important Approach ◽  
Total Inventory ◽  
Inventory Control Model ◽  
The Cost

In order to maximize inventory benefits or minimize costs, reliability and cost of inventory control models need to be identified and analyzed. These importance measures are one important approach to recognize and evaluate system weaknesses. However, importance measures have fewer applications in inventory systems’ reliability. Considering the cost, this paper mainly discusses the reliability change of performance parameters with the importance measures in inventory systems. The calculation methods of differential importance and Birnbaum importance are studied in the inventory control model with shortages. By comparing the importance values of various parameters in the model, the optimization analysis of the inventory model can be used to identify the key parameters, so as to effectively reduce the total inventory cost. The importance order and the identification of key parameters are helpful to increase the operational efficiency of the inventory control and provide effective methods for improving the inventory management. Lastly, a case study with a shortage and limited inventory capacity is used to demonstrate the proposed model.

Comments on Two Models for Operating Two-Warehouse Inventory Systems with Deteriorating Items and Inflationary Effects

2013 ◽  
pp. 349-370
Author(s):  
Huachun Xiong ◽  
Jinxing Xie ◽  
Bo Niu
Keyword(s):  
Infinite Horizon ◽  
Planning Horizon ◽  
Inventory Systems ◽  
Traditional Model ◽  
Present Value ◽  
Total Cost ◽  
Demand Rate ◽  
Replenishment Cycle ◽  
The Cost ◽  
Infinite Planning Horizon

This paper deals with the two-warehouse partial backlogging inventory problems under inflation for a deteriorating product with a constant demand rate over an infinite horizon. In contrast to the traditional model in which each replenishment cycle starts with an instant replenishment and ends with shortages, an alternative model is proposed in recent literature in which each cycle starts with shortages. It is proven to be less expensive to operate than the traditional model in terms of the present value of the cost per unit time. The present paper points out that the criteria of minimizing the cost per unit time is unreasonable when the inflationary effect is taken into consideration, and instead, the criteria of minimizing the present value of the total cost over the whole infinite planning horizon should be used. The objective functions of these two models are changed and proved that the model with shortages at the start of the cycle is less expensive to operate than the traditional model in terms of the present value of the total cost, but the optimal solutions of the models minimizing the cost per unit time indicate significantly higher total costs.

scholarly journals From EOQ to JIT with Storage Consideration: Coordinating a Two Level Supply Chain

2021 ◽  
Author(s):  
Yohan Jeju John
Keyword(s):  
Supply Chain ◽  
Cost Savings ◽  
Inventory Systems ◽  
Just In Time ◽  
Order Quantity ◽  
Eoq Model ◽  
Penalty Costs ◽  
Equal Capacity ◽  
The Cost ◽  
Cost Factors

Many organizations are faced with a decision to choose between two inventory systems namely JIT (Just in Time) and EOQ (Economic Order Quantity). This thesis models the cost drivers into the EOQ model and extends it to the JIT scenario. They include cost savings like space, synergy of coordination, and other cost factors like rework and penalty costs. It looks at the total cost of the supply chain with two players and calculates space in terms of storage spaces of equal capacity. Results showed that considering space in EOQ brought savings to the chain. It has brought down the order quantity closer to, and many times equal to JIT ordering quantities. Coordination in the chain has brought further savings. Moving to JIT (ordering daily supply of demand) from the point, where space is accounted and there is coordination between the two levels, did not require much reduction in ordering costs.

Transloads: Freight Movement Efficiencies in the Next Decade

2012 ◽  
Author(s):  
David M. Thomson
Keyword(s):  
Material Handling ◽  
Inventory Systems ◽  
Alternative Methods ◽  
Rail Transportation ◽  
Highway Infrastructure ◽  
The Past ◽  
Material Handling Systems ◽  
Critical Success ◽  
Success Criteria ◽  
The Cost

This paper will present the criteria for the marketing, design and operational success of a transload facility. As the nation’s highway infrastructure continues to struggle with needed maintenance, the cost of fuel continues at historical highs coupled with a desire to reduce the overall carbon emissions of moving freight, alternative methods of moving product are required by shippers. Rail provides alternatives to accomplish the movement of intercity freight while addressing many of these concerns. Transload facilities, taking product from trucks to railcars or vice versa, provide a mechanism for non-railroad served industries to utilize rail transportation. The design of the facility, its level or frequency of service from the railroad, its internal layout, operational and inventory systems, and material handling systems for the product being handled are all important considerations that must be understood and optimized for these facilities to be successful. Profitable operation and growth of a transload facility is a challenge met by combining knowledge about trucking, warehousing and railroading. After managing a large transload network while with a Class One railroad, owning and operating transloads, designing them for a variety of commodities, and interviewing Operators across the country over the past 15 years, I have found a few critical success criteria to be consistent across all transloads.

scholarly journals From EOQ to JIT with Storage Consideration: Coordinating a Two Level Supply Chain

2021 ◽  
Author(s):  
Yohan Jeju John
Keyword(s):  
Supply Chain ◽  
Cost Savings ◽  
Inventory Systems ◽  
Just In Time ◽  
Order Quantity ◽  
Eoq Model ◽  
Penalty Costs ◽  
Equal Capacity ◽  
The Cost ◽  
Cost Factors

Many organizations are faced with a decision to choose between two inventory systems namely JIT (Just in Time) and EOQ (Economic Order Quantity). This thesis models the cost drivers into the EOQ model and extends it to the JIT scenario. They include cost savings like space, synergy of coordination, and other cost factors like rework and penalty costs. It looks at the total cost of the supply chain with two players and calculates space in terms of storage spaces of equal capacity. Results showed that considering space in EOQ brought savings to the chain. It has brought down the order quantity closer to, and many times equal to JIT ordering quantities. Coordination in the chain has brought further savings. Moving to JIT (ordering daily supply of demand) from the point, where space is accounted and there is coordination between the two levels, did not require much reduction in ordering costs.

scholarly journals On the shortage control in a continuous review (Q, r) inventory policy using αL service-level

2021 ◽  
Vol 55 (5) ◽  
pp. 2785-2806
Author(s):  
Pablo Escalona ◽  
Diego Araya ◽  
Enrique Simpson ◽  
Mario Ramirez ◽  
Raul Stegmaier
Keyword(s):  
Service Level ◽  
Inventory Systems ◽  
Inventory Policy ◽  
Continuous Review ◽  
Arbitrary Time ◽  
Product Availability ◽  
Random Events ◽  
Replenishment Cycle ◽  
The Cost

Popular measures of product availability in inventory systems seek to control different aspects of stock shortages. However, none of them simultaneously control all aspects of shortages, because stock shortages in inventory systems are complex random events. This paper analyzes the performance of αL service measure, defined as the probability that stockouts do not occur during a replenishment cycle, to cover different aspects of stock shortages when used to design an optimal continuous review (Q, r) policy. We show that explicitly controlling the frequency of replenishment cycle stockouts, using the αL service-level, allows to implicitly control the size of the stockouts at an arbitrary time, the size of accumulated backorders at an arbitrary time, and the duration of the replenishment cycle stockouts. However, the cost of controlling the frequency of replenishment cycle stockouts is greater than the cost of controlling the size of stockouts and the duration of the replenishment cycle stockouts.

The IBM-PC in electron microscopy

1996 ◽  
Vol 54 ◽  
pp. 612-613
Author(s):  
James F. Mancuso
Keyword(s):  
Head Start ◽  
Image Acquisition ◽  
Cost Effective ◽  
Financial Applications ◽  
Number Of Factors ◽  
Instrument Control ◽  
The Cost ◽  
Training And Support ◽  
Control Image ◽  
Ibm Pc

IBM PC compatible computers are widely used in microscopy for applications ranging from control to image acquisition and analysis. The choice of IBM-PC based systems over competing computer platforms can be based on technical merit alone or on a number of factors relating to economics, availability of peripherals, management dictum, or simple personal preference.IBM-PC got a strong “head start” by first dominating clerical, document processing and financial applications. The use of these computers spilled into the laboratory where the DOS based IBM-PC replaced mini-computers. Compared to minicomputer, the PC provided a more for cost-effective platform for applications in numerical analysis, engineering and design, instrument control, image acquisition and image processing. In addition, the sitewide use of a common PC platform could reduce the cost of training and support services relative to cases where many different computer platforms were used. This could be especially true for the microscopists who must use computers in both the laboratory and the office.

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