Optimizing Inventory Classification and Service Levels Under Budget and Warehouse Space Control

2021 ◽  
Vol 12 (3) ◽  
pp. 80-92
Author(s):  
Rathanaksambath Ly ◽  
Morrakot Raweewan
Keyword(s):  
Service Level ◽  
Multiple Criteria ◽  
Decision Makers ◽  
Computational Experiments ◽  
Mixed Integer ◽  
Inventory Analysis ◽  
Service Levels ◽  
Operating Budget ◽  
Optimal Service

There are several techniques of inventory classification and prioritization based on a single criteria, bi-criteria, or multiple criteria; however, managing inventory can fail when trying to fit inventory classes into the operating budget and available warehouse space. This research focuses on optimizing inventory classes and determining an optimal service level of each class while simultaneously satisfying operating budget and space constraints. The idea is to help decision makers to effectively rank and group SKUs and manage them within the constraints while satisfying customers. This proposed methodology is an optimality-based approach that uses mixed integer linear programing to solve the problem. Computational experiments are conducted to illustrate the proposed method. Results are compared with a classical ABC inventory analysis.

scholarly journals A Multi-Echelon Network Design in a Dual-Channel Reverse Supply Chain Considering Consumer Preference

2021 ◽  
Vol 18 (9) ◽  
pp. 4760
Author(s):  
Peng Li ◽  
Di Wu
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Environmental Sustainability ◽  
Rapid Development ◽  
Consumer Preference ◽  
Service Level ◽  
Mixed Integer ◽  
Reverse Supply Chain ◽  
Related Factors ◽  
Dual Channel

The rapid development of e-commerce technologies has encouraged collection centers to adopt online recycling channels in addition to their existing traditional (offline) recycling channels, such the idea of coexisting traditional and online recycling channels evolved a new concept of a dual-channel reverse supply chain (DRSC). The adoption of DRSC will make the system lose stability and fall into the trap of complexity. Further the consumer-related factors, such as consumer preference, service level, have also severely affected the system efficiency of DRSC. Therefore, it is necessary to help DRSCs to design their networks for maintaining competitiveness and profitability. This paper focuses on the issues of quantitative modelling for the network design of a general multi-echelon, dual-objective DRSC system. By incorporating consumer preference for the online recycling channel into the system, we investigate a mixed integer linear programming (MILP) model to design the DRSC network with uncertainty and the model is solved using the ε-constraint method to derive optimal Pareto solutions. Numerical results show that there exist positive correlations between consumer preference and total collective quantity, online recycling price and the system profits. The proposed model and solution method could assist recyclers in pricing and service decisions to achieve a balance solution for economic and environmental sustainability.

scholarly journals Distribution-Free Model for Ambulance Location Problem with Ambiguous Demand

2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Feng Chu ◽  
Lu Wang ◽  
Xin Liu ◽  
Chengbin Chu ◽  
Yang Sui
Keyword(s):  
Probability Distribution ◽  
Location Problem ◽  
Service Level ◽  
Mixed Integer ◽  
Distribution Free ◽  
Demand Information ◽  
The Mean ◽  
Constrained Model ◽  
Short Time ◽  
Ambulance Location

Ambulance location problem is a key issue in Emergency Medical Service (EMS) system, which is to determine where to locate ambulances such that the emergency calls can be responded efficiently. Most related researches focus on deterministic problems or assume that the probability distribution of demand can be estimated. In practice, however, it is difficult to obtain perfect information on probability distribution. This paper investigates the ambulance location problem with partial demand information; i.e., only the mean and covariance matrix of the demands are known. The problem consists of determining base locations and the employment of ambulances, to minimize the total cost. A new distribution-free chance constrained model is proposed. Then two approximated mixed integer programming (MIP) formulations are developed to solve it. Finally, numerical experiments on benchmarks (Nickel et al., 2016) and 120 randomly generated instances are conducted, and computational results show that our proposed two formulations can ensure a high service level in a short time. Specifically, the second formulation takes less cost while guaranteeing an appropriate service level.

Fuzzy Decision Making in Politics: A Linguistic Fuzzy-Set Approach (LFSA)

2005 ◽  
Vol 13 (1) ◽  
pp. 23-56 ◽  
Author(s):  
Badredine Arfi
Keyword(s):  
Decision Making ◽  
Set Theory ◽  
Fuzzy Set ◽  
Fuzzy Set Theory ◽  
Multiple Criteria ◽  
Decision Makers ◽  
Fuzzy Decision Making ◽  
Fuzzy Decision ◽  
Trust And Power

In this article I use linguistic fuzzy-set theory to analyze the process of decision making in politics. I first introduce a number of relevant elements of (numerical and linguistic) fuzzy-set theory that are needed to understand the terminology as well as to grasp the scope and depth of the approach. I then explicate a linguistic fuzzy-set approach (LFSA) to the process of decision making under conditions in which the decision makers are required to simultaneously satisfy multiple criteria. The LFSA approach is illustrated through a running (hypothetical) example of a situation in which state leaders need to decide how to combine trust and power to make a choice on security alignment.

scholarly journals Evaluation and Selection of Nigerian Third-Party Logistics Service Providers Using Multi-Criteria Decision Models

2021 ◽  
Vol 12 (1) ◽  
pp. 135-146
Author(s):  
E.A. Ejem ◽  
C.M. Uka ◽  
D.N. Dike ◽  
C.C. Ikeogu ◽  
C.C. Igboanusi ◽  
...  
Keyword(s):  
Service Providers ◽  
Service Level ◽  
Decision Makers ◽  
Third Party ◽  
Decision Models ◽  
Third Party Logistics ◽  
Logistics Service ◽  
Logistics Service Providers ◽  
Selection Of

Abstract This paper is focused on solving the evaluation and selection of 3PL’s by applying multi-criteria decision-making methods. Nigerian Breweries, Nigerian Bottling Company (NBC), AG Leventis, Kobo logistics, and Flour Mills of Nigeria (FMN) were understudied. The main criteria on which evaluation is based were established: Cost, Service level, Financial Capability, Reputation and Long-term relationship. A combination of two quantitative models was adopted in the study. Relevant data were collected through an oral interview with managers and key decision-makers at the companies. SWARA was first applied to the collated data to determine the relative weights of the criteria. Afterwards, the TOPSIS was applied to the weights developed using SWARA and on the performance of the selected service providers. After the analysis, the best service provider was identified as supplier 2 while the worst was supplier 5.

A Machine Learning-Based System for Predicting Service-Level Failures in Supply Chains

2021 ◽  
Author(s):  
Gabrielle Gauthier Melançon ◽  
Philippe Grangier ◽  
Eric Prescott-Gagnon ◽  
Emmanuel Sabourin ◽  
Louis-Martin Rousseau
Keyword(s):  
Machine Learning ◽  
Supply Chain ◽  
Service Level ◽  
Learning System ◽  
Safety Stock ◽  
Service Levels ◽  
Sources Of Uncertainty ◽  
Supply Chain Efficiency ◽  
Percentage Points ◽  
Different Sources

Despite advanced supply chain planning and execution systems, manufacturers and distributors tend to observe service levels below their targets, owing to different sources of uncertainty and risks. These risks, such as drastic changes in demand, machine failures, or systems not properly configured, can lead to planning or execution issues in the supply chain. It is too expensive to have planners continually track all situations at a granular level to ensure that no deviations or configuration problems occur. We present a machine learning system that predicts service-level failures a few weeks in advance and alerts the planners. The system includes a user interface that explains the alerts and helps to identify failure fixes. We conducted this research in cooperation with Michelin. Through experiments carried out over the course of four phases, we confirmed that machine learning can help predict service-level failures. In our last experiment, planners were able to use these predictions to make adjustments on tires for which failures were predicted, resulting in an improvement in the service level of 10 percentage points. Additionally, the system enabled planners to identify recurrent issues in their supply chain, such as safety-stock computation problems, impacting the overall supply chain efficiency. The proposed system showcases the importance of reducing the silos in supply chain management.

OP58 Testing Of A Multiple Criteria Decision Analysis Value Framework With Decision Makers Across Europe

2017 ◽  
Vol 33 (S1) ◽  
pp. 25-26
Author(s):  
Aris Angelis ◽  
Mark Linch ◽  
Gilberto Montibeller ◽  
Teresa Molina-Lopez ◽  
Anna Zawada ◽  
...  
Keyword(s):  
Decision Analysis ◽  
Relative Weight ◽  
Value Theory ◽  
Multiple Criteria ◽  
Decision Makers ◽  
Multiple Criteria Decision Analysis ◽  
Model Assessment ◽  
Value Assessment ◽  
Therapeutic Impact ◽  
Trade Offs

INTRODUCTION:We test in practice a Multiple Criteria Decision Analysis (MCDA) framework for the value assessment of a set of therapeutic options for the indication of hormone relapsed metastatic prostate cancer (mPC) through a series of simulation exercises with the participation of decision makers from different Health Technology Assessment (HTA)/insurance agencies across Europe, including TLV (Sweden), AETSA (Andalusia-Spain), INAMI-RIZIV (Belgium) and AOTMiT (Poland). The drugs evaluated were abiraterone, cabazitaxel and enzalutamide.METHODS:Using a multi-attribute value theory framework, past research outcomes and literature findings, an mPC-specific value tree was constructed incorporating relevant concerns as criteria. By adopting the MACBETH approach the different drugs were scored against the criteria through the development of value functions, relative weights were assigned to the criteria using a swing weighting technique, scores and weights were combined using an additive aggregation technique, and sensitivity analysis of results was conducted. All stages were informed through the participation of a small group of experts from each HTA/insurance agency at a series of decision conferences taking place in each country.RESULTS:Value parameters considered spanned the dimensions of therapeutic impact, safety profile, innovation level and socioeconomic impact. Overall weighted preference value scores were produced reflecting the performance of the treatments against the criteria while considering their relative importance. Order of treatments’ rankings was identical across all agencies, with enzalutamide scoring highest and cabazitaxel lowest. Therapeutic impact criteria always produced the greatest relative weight. Hypothetical priority setting decisions were made based on “value-for-money” grounds through the use of “cost per unit of value” metrics by incorporating purchasing costs.CONCLUSIONS:The MCDA framework tested possesses a number of characteristics that could facilitate decision making, including the systematic and explicit incorporation of value trade-offs as part of model assessment and the transparency throughout all its stages. Therefore, it has the prospects to act as a practical evaluation tool for value assessment and communication during the HTA process.

scholarly journals Network Design for Municipal Solid Waste Collection: A Case Study of the Nanjing Jiangbei New Area

2018 ◽  
Vol 15 (12) ◽  
pp. 2812 ◽  
Author(s):  
Jing Liang ◽  
Ming Liu
Keyword(s):  
Municipal Solid Waste ◽  
Network Design ◽  
Solid Waste ◽  
Relative Size ◽  
Service Level ◽  
Optimal Number ◽  
Mixed Integer ◽  
Proposed Model ◽  
The Impact ◽  
Operation Cost

Garbage collection is an important part of municipal engineering. An effective service network design can help to reduce the municipal operation cost and improve its service level. In this paper, we propose an optimization model for the network design of municipal solid waste (MSW) collection in the Nanjing Jiangbei new area. The problem was formulated as a mixed integer nonlinear programming (MINLP) model with an emphasis on minimizing the annual operation cost. The model simultaneously decides on the optimal number of refuse transfer stations (RTSs), determines the relative size and location for each RTS, allocates each community to a specific RTS, and finally identifies the annual operation cost and service level for the optimal scenario as well as other scenarios. A custom solution procedure which hybrids an enumeration rule and a genetic algorithm was designed to solve the proposed model. A sensitivity analysis was also conducted to illustrate the impact of changes in parameters on the optimality of the proposed model. Test results revealed that our model could provide tangible policy recommendations for managing the MSW collection.

scholarly journals A case of misalignment: the perspectives of local and national decision-makers on the implementation of psychological treatment by telephone in the Improving Access to Psychological Therapies Service

2019 ◽  
Vol 19 (1) ◽  
Author(s):  
Kelly Rushton ◽  
Claire Fraser ◽  
Judith Gellatly ◽  
Helen Brooks ◽  
Peter Bower ◽  
...  
Keyword(s):  
Focus Group ◽  
Best Practice ◽  
Psychological Treatment ◽  
Cost Savings ◽  
Clinical Effectiveness ◽  
Service Level ◽  
Patient Choice ◽  
Decision Makers ◽  
Normalisation Process Theory ◽  
Access To Treatment

Abstract Background Psychological treatment delivered by telephone is recommended by the National Institute for Health and Care Excellence (NICE) for mild to moderate depression and anxiety, and forms a key part of the Improving Access to Psychological Therapy (IAPT) programme in the UK. Despite evidence of clinical effectiveness, patient engagement is often not maintained and psychological wellbeing practitioners (PWPs) report lacking confidence and training to deliver treatment by telephone. This study aimed to explore the perspectives of professional decision makers (both local and national) on the barriers and facilitators to the implementation of telephone treatment in IAPT. Methods Sixteen semi-structured qualitative telephone interviews and one focus group were carried out with decision makers (n = 21) who were involved locally and nationally in policy, practice and research. The interviews and focus group were coded thematically, and then mapped onto the four core constructs of Normalisation Process Theory (NPT). Results The use of telephone for psychological treatment was universally recognised amongst participants as beneficial for improving patient choice and access to treatment. However, at service level, motives for the implementation of telephone treatments are often misaligned with national objectives. Pressure to meet performance targets has become a key driver for the use of telephone treatment, with promises of increased efficiency and cost savings. These service-focussed objectives challenge the integration of telephone treatments, and PWP acceptance of telephone treatments as non-inferior to face-to-face. Ambivalence among a workforce often lacking the confidence to deliver telephone treatments leads to reluctance among PWPs to ‘sell’ treatments to a patient population who are not generally expecting treatment in this form. Conclusions Perceptions of a need to ‘sell’ telephone treatment in IAPT persist from top-level decision makers down to frontline practitioners, despite their conflicting motives for the use of telephone. The need for advocacy to highlight the clinical benefit of telephone treatment, along with adequate workforce support and guidance on best practice for implementation is critical to the ongoing success and sustainability of telephone treatment in primary care mental health programmes.

The strategic design of port services based on a total landed cost approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rosa G. González-Ramírez ◽  
J. Rene Villalobos ◽  
Cesar Meneses
Keyword(s):  
Service Time ◽  
Public Information ◽  
Service Level ◽  
Competitive Position ◽  
Content Type ◽  
Service Levels ◽  
Strategic Design ◽  
Confidentiality Agreement ◽  
Traffic Volumes ◽  
High Level

PurposeThis paper explores the effect of port's service time, particularly the mean and variability, on shippers' total landed costs to determine the competitive position of the port and derive recommendations for the strategic design of port services.Design/methodology/approachThe competitive position of a port is estimated considering the service level offered to the end-users of the port such as port service time, its variability and its effect on the total landed costs observed by the port users. The proposed methodology is meant to help ports to determine the required service time levels to maintain or gain a competitive advantage against other ports, in terms of attracting common hinterland's customers.FindingsResults show the advantages of considering service levels factors to determine the competitive position of a port, and what are the minimum characteristics required to capture more traffic volumes, that can help port managers to take strategic design decisions to better position the port in the current fierce market.Research limitations/implicationsThe proposed methodology is illustrated by considering a case study, which is the Port of Guaymas in Mexico. Data was not directly collected by the port, but based on interviews with shippers and public information, a representative case is presented. Due to a confidentiality agreement with the Port, specific references for most of the data used to estimate the model's parameters are not provided. The analysis is intended to show the potential value of this mechanism and can be used for evaluating the competitive position, from a high-level perspective, of any port to determine potential hinterland by improving the service level of the port.Originality/valueThe existing literature on port choice and port competition has not previously considered the effect of port service levels under the perspective of total landed costs of the users, being this paper a contribution to fulfill this gap.

More Effective Winter Maintenance Method for Cycleways

2003 ◽  
Vol 1824 (1) ◽  
pp. 115-122 ◽  
Author(s):  
A. Bergström
Keyword(s):  
Field Studies ◽  
Service Level ◽  
Environmental Benefits ◽  
Service Levels ◽  
Winter Maintenance ◽  
Road Condition ◽  
Maintenance Service ◽  
Cycling Frequency ◽  
Survey Interviews ◽  
Personal Travel

Increased cycling as a means of personal travel could generate environmental benefits if associated with a corresponding decrease in car-based transport. For promoting cycling during winter, the maintenance service level of cycleways is of importance. Earlier studies indicated that the Swedish public is unsatisfied with the service levels provided on cycleways during winter. In Sweden, cycleways normally are cleared of snow through plowing and are gritted for skid control. Field studies tested an unconventional winter maintenance method that uses a power broom for snow clearance and salt for deicing. The field studies were evaluated through road-condition observations, measurements of friction, a questionnaire survey, interviews, and bicycle measurements. The method of using a power broom for snow clearance and salt for deicing provided a higher service level than traditional winter maintenance methods, but it was two to three times more expensive. The method has greater potential in regions, such as southern Sweden, with low snow accumulations but with major ice-formation problems than in regions with a colder climate. Cyclists noticed the improved maintenance service level provided with the method used in the field study, but although cyclists stated that road condition is important to their decision to cycle, it could not be concluded that the enhanced service level generated a higher winter cycling frequency.

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