Data-Driven Cash Replenishment Planning of Recycling ATMs with Out-of-Cash and Full-of-Cash Risks

2020 ◽  
Vol 13 (2) ◽  
pp. 77-96
Author(s):  
Yongwu Zhou ◽  
Qiran Wang ◽  
Yongzhong Wu ◽  
Mianmian Huang
Keyword(s):  
Real Data ◽  
Service Level ◽  
Inventory Model ◽  
Data Driven ◽  
Safety Stocks ◽  
Automated Teller Machines ◽  
Operational Costs

When banks replenish the cash held in automated teller machines (ATMs) it is crucial for them to reduce operational costs while maintaining service level. This article studies the replenishment planning for recycling ATMs, which allow cash deposits to be made as well as withdrawals. The problem is formulated as a special (s, S) inventory model with two safety stocks corresponding to out-of-stock and full-of-stock risks, based on which the ATMs to be replenished each day and the replenishment amount are determined. Experiments with real data show that the model can significantly reduce costs and improve the overall service level.

scholarly journals An Inventory Model for Deteriorating Drugs with Stochastic Lead Time

2018 ◽  
Vol 15 (12) ◽  
pp. 2772 ◽  
Author(s):  
Jian Li ◽  
Lu Liu ◽  
Hao Hu ◽  
Qiuhong Zhao ◽  
Libin Guo
Keyword(s):  
Shelf Life ◽  
Inventory Management ◽  
Lead Time ◽  
Service Level ◽  
Inventory Model ◽  
Effective Management ◽  
Product Availability ◽  
Stochastic Lead Time ◽  
Random Lead Time ◽  
The Right

Inventory management of deteriorating drugs has attracted considerable attention recently in hospitals. Drugs are a kind of special product. Two characteristics of some drugs are the shorter shelf life and high service level. This causes hospitals a great deal of difficulty in inventory management of perishable drugs. On one hand, hospitals should increase the drug inventory to achieve a higher service level. On the other hand, hospitals should decrease the drug inventory because of the short shelf life of drugs. An effective management of pharmaceuticals is required to ensure 100% product availability at the right time, at the right cost, in good conditions to the right customers. This requires a trade-off between shelf-life and service level. In addition, many uncontrollable factors can lead to random lead time of drugs. This paper focuses on deteriorating drugs with stochastic lead time. We have established a stochastic lead time inventory model for deteriorating drugs with fixed demand. The lead time obeyed a certain distribution function and shortages were allowed. This model also considered constraints on service level, stock space and drug shelf life. Through the analysis of the model, the shelf life of drugs and service level were weighted in different lead time distributions. Empirical analysis and sensitivity analysis were given to get reach important conclusions and enlightenment.

scholarly journals Validating Virtual Safety Stock Effectiveness through Simulation

10.5772/56859 ◽  
2013 ◽  
Vol 5 ◽  
pp. 41 ◽  
Author(s):  
Maria Elena Nenni ◽  
Massimiliano M. Schiraldi
Keyword(s):  
Service Level ◽  
Inventory System ◽  
Time Interval ◽  
Common Condition ◽  
Simple Method ◽  
Safety Stock ◽  
Safety Stocks ◽  
Base Stock Policy ◽  
Stock Policy ◽  
Business To Business

As a means of avoiding stock-outs, safety stocks play an important role in achieving customer satisfaction and retention. However, traditional safety stock theory is based on the assumption of the immediate delivery of the ordered products, which is not a common condition in business-to-business contexts. Virtual safety stock theory was conceived to raise the service level by exploiting the potential time interval in the order-to-delivery process. Nevertheless, its mathematical complexity prevented this technique from being widely adopted in the industrial world. In this paper, we present a simple method to test virtual safety stock effectiveness through simulation in an inventory system using a base stock policy with periodic reviews and backorders. This approach can be useful for researchers as well as practitioners who want to model the behaviour of an inventory system under uncertain conditions and verify the opportunity for setting up a virtual safety stock on top of, or instead of, the traditional physical safety stock.

An (s, S) Inventory Optimization Problem

2019 ◽  
pp. 187-206
Author(s):  
Gizem Sağol ◽  
Görkem Sariyer ◽  
Banu Yetkin Ekren ◽  
Mustafa Gökalp Ataman
Keyword(s):  
Inventory Management ◽  
Optimization Problem ◽  
Service Level ◽  
Inventory Model ◽  
Considerable Effort ◽  
Medical Products ◽  
High Service ◽  
Inventory Optimization ◽  
Medical Supplies

Inventory management is one essential lever to use the resources efficiently. However, managing inventories in hospitals is a challenging task because of the several issues: a high service level of medical supplies is required under the unpredictable demand, medical products constitute a significant portion of the overall costs, and the management of these supplies requires considerable effort to check the levels to track usage and to distribute them. Therefore, it is pertinence to apply operations research tools to cope with the managerial issues of the hospital inventory system. In this chapter, the authors implement an (s, S) inventory model by using simulation in a case study of a hospital in Izmir, Turkey. They aim to analyze the unpredictable nature of demand of medical supplies in this hospital and its implications on the developed inventory policy.

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