Inventory Control and Replenishment of Multi-Product Multi-Echelon Based on Time Cost Under JMI Environment

2013 ◽  
Vol 5 (2) ◽  
pp. 19-30
Author(s):  
Zhi Chen ◽  
Chao Ren ◽  
Ren-long Zhang ◽  
Mi-Yuan Shan
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Service Level ◽  
Control Model ◽  
Management Tool ◽  
Time Cost ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
Replenishment Strategy

Joint managed inventory is an advanced supply chain inventory management tool, which will effectively tackle the complicated problem between the inventory cost of supply chain and service level. The research on inventory model and its’ control under JMI environment is a hot issue at present. In this paper, the authors deeply discuss the question of the inventory time costs about the multi-product and multi-echelon control model and its’ replenishment strategy under JMI environment. With considering the foundation of JMI and time cost, the authors propose the multi-product multi-echelon inventory cost control model under time cost. Then formulate corresponding replenishment strategy. At last, through a numerical example, the authors discover that the multi-product multi-echelon joint inventory management based on time cost can effectively reduce the total inventory costs and improve the competitiveness of the entire supply chain.

Review on Inventory Controlling of Building Materials Supply Chain from Uncertainty Demands in Civil Engineering

2012 ◽  
Vol 174-177 ◽  
pp. 3441-3443
Author(s):  
Bin Yang
Keyword(s):  
Supply Chain ◽  
Building Materials ◽  
Simulated Annealing Algorithm ◽  
Supply And Demand ◽  
Cost Models ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
Annealing Algorithm ◽  
The Difference

Inventory control is a necessary strategy that enterprises use to offset the effect of uncertainties in manufacturing, supply and demand. Normally, probability distribution is used to analyze the uncertainty problems, however, this analysis can’t be completed with inadequate data, resulting in an increase in inventory costs. The paper establishes inventory cost models of single supply chain member under uncertainty demands and applies Simulated Annealing Algorithm to imitate the models in 52 weeks to seek for the optimal speaking for amount and anew speaking for point so that compares the difference of supply chain total inventory cost and the sufficing rate of order for goods between independently and collaborated controlling strategy in supply chain, and in order to provide the necessary theoretical supports for the enterprises to establish supply chain partnerships and possibly improve the supply chain capability of providing external integration.

Two-Echelon Inventory Stochastic Model of Supply Chain Based on Service Level Constraints

2014 ◽  
Vol 971-973 ◽  
pp. 2448-2451
Author(s):  
Da Li Jiang ◽  
Guang Fu Zhu ◽  
De Li
Keyword(s):  
Supply Chain ◽  
Stochastic Model ◽  
Service Level ◽  
Inventory Model ◽  
Inventory Level ◽  
Effective Algorithm ◽  
Inventory Cost ◽  
Total Inventory

The study on multi-echelon inventory of supply chain is becoming more and more important in E-business era. This paper proposes a two-echelon inventory model with one supplier and several retailers, in which a certain service level has to be satisfied and the goal is to minimize the total inventory cost. In addtion it puts forward an effective algorithm for this model to obtain the optimal replenishment period and inventory level of each supply chain node.

Dynamic Planning Model for Port Iorn Ore Inventory

2013 ◽  
Vol 409-410 ◽  
pp. 1429-1432
Author(s):  
Gui Bin Xu ◽  
Xu Zhao ◽  
Xue Ting Li
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Management Strategy ◽  
Iron Ore ◽  
Planning Model ◽  
Inventory Cost ◽  
Dynamic Planning ◽  
Total Inventory ◽  
Inventory Strategy

Port inventory is a very important part in iron ore supply chain. Through the inventory management, we can get the best inventory strategy to minimize the total inventory cost. The inventory management of the port iron ore can get a reasonable and feasible inventory management strategy through the dynamic planning model.

scholarly journals PENGENDALIAN PERSEDIAAN BARANG DAGANG MENGGUNAKAN METODE ECONOMIC ORDER QUANTITY

2021 ◽  
Vol 3 (2) ◽  
Author(s):  
Fanny Andriani Setiawan ◽  
Margarita Ekadjaja ◽  
Yustina Peniyanti
Keyword(s):  
Inventory Management ◽  
Cost Savings ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Cost Calculation ◽  
Order Quantity ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
The Cost

Inventory control can be done by reducing the cost of inventory and the number of ordering frequencies economically. PT Tanjung Globalindo Utama or Toko TODA is an oil and accessory retail store that provides various oil needs. Some of the problems are late delivery of goods from suppliers, so that for several days the company cannot operate optimally. On the other hand, the company has also experienced an excess inventory of merchandise, so the company wastes due to excess inventory of merchandise which in turn increases inventory costs. The Community Service Team (PKM) provides a solution for TODA Stores in overcoming their problems by providing training in inventory management in the Economic Order Quantity (EOQ) method. PKM activities were carried out on May 22, 2020. Participation of partners in the PKM program is to participate in discussions, provide historical data, and convey targets. The output is that the TODA Shop can determine the amount and schedule for the procurement of merchandise economically. The result is that Toko Toda begins to understand the importance of controlling inventory so that inventory costs are not too high. Proposed procedures for purchasing merchandise inventory were received and started to be carried out with monitoring from the relevant PKM Team. Based on the calculation simulation results and discussion shows that the use of the EOQ method in controlling merchandise inventory at Toda Stores is very efficient, seen from the amount of cost savings obtained if the total inventory cost calculation uses the EOQ methodABSTRAK:Pengendalian persediaan dapat dilakukan dengan menekan biaya persediaan dan jumlah frekwensi pemesanan secara ekonomis. PT Tanjung Globalindo Utama atau Toko TODA adalah Toko retail oli dan aksesori yang menyediakan berbagai kebutuhan oli. Beberapa permasalahan yang sering dialami adalah keterlambatan pengiriman barang dari supplier, sehingga selama beberapa hari perusahaan tidak dapat beroperasi maksimal. Disisi lain perusahaan juga pernah mengalami kelebihan persediaan barang dagang, sehingga perusahaan melakukan pemborosan akibat kelebihan persediaan barang dagang yang pada akhirnya meningkatkan biaya persediaan. Tim Pengabdian Kepada Masyarakat (PKM) memberikan solusi untuk Toko TODA dalam mengatasi permasalahannya dengan memberikan pelatihan tata kelola persediaan metode Economic Order Quantity (EOQ). Kegiatan PKM telah dilaksanakan pada tanggal 22 Mei 2020. Partisipasi mitra dalam program PKM adalah ikut serta dalam berdiskusi, memberikan data-data historikal, dan menyampaikan target yang hendak dicapai. Target luaran dari kegiatan PKM ini adalah Toko TODA dapat menentukan jumlah dan jadwal pengadaan barang dagang secara ekonomis. Hasil kegiatan PKM adalah Toko Toda mulai memahami pentingnya pengendalian persediaan barang dagang agar biaya persediaan tidak terlalu besar. Usulan prosedur pembelian persediaan barang dagang diterima dan mulai dijalankan dengan pemantauan dari Tim PKM terkait. Berdasarkan hasil simulasi perhitungan dan diskusi menunjukkan bahwa penggunaan metode EOQ dalam mengendalikan persediaan barang dagang pada Toko Toda sangatlah efisien terlihat dari besarnya penghematan biaya yang diperoleh jika perhitungan total biaya persediaan menggunakan metode EOQ.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

scholarly journals Analisis Pengendalian Persediaan Bahan Baku dengan Menerapkan Metode EOQ (Economic Order Quantity) pada PT. Jatisari Furniture Work

2021 ◽  
Vol 5 (1) ◽  
pp. 215
Author(s):  
Arga Sutrisna ◽  
Rizki Ginanjar ◽  
Suci Putri Lestari
Keyword(s):  
Production Costs ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Analysis Tool ◽  
Order Quantity ◽  
Inventory Cost ◽  
Total Cost ◽  
Inventory Costs ◽  
Total Inventory

This research objectives aims to determine and analyze raw material inventory control, the ideal raw material inventory that the company must provide and the efficiency of production costs carried out by Jatisri Furniture Work in Tasikmalaya for the period 2018.11 – 2020.02. The data collection method in this study is by direct observation at Jatisari Furniture Work in Tasikmalaya. Using techniques such us interviews, observation, and documentation. These observations were made in production reports for the years 2018 – 2020. The analysis tool was carried out using the Economic Order Quantity (EOQ) method such us safety stock, reorder point, and total inventory cost. The result of the Economic Order Quantity (EOQ) analysis show that the total cost of raw the material inventory that must be incurred by the company is greater than the total cost of inventories calculated according to the EOQ method. Companies should follow the calculations from the EOQ method so that they can save on raw material inventory costs, so that production costs are more efficient.

scholarly journals Inventory model for deteriorating items with negative exponential demand, probabilistic deterioration and fuzzy lead time under partial back logging

2020 ◽  
Vol 30 (3) ◽  
Author(s):  
Nabendu Sen ◽  
Sumit Saha
Keyword(s):  
Inventory Management ◽  
Lead Time ◽  
Probability Distributions ◽  
Optimal Strategies ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Optimal Time ◽  
Inventory Cost ◽  
Total Inventory ◽  
Negative Exponential

The effect of lead time plays an important role in inventory management. It is also important to study the optimal strategies when the lead time is not precisely known to the decision makers. The aim of this paper is to examine the inventory model for deteriorating items with fuzzy lead time, negative exponential demand, and partially backlogged shortages. This model is unique in its nature due to probabilistic deterioration along with fuzzy lead time. The fuzzy lead time is assumed to be triangular, parabolic, trapezoidal numbers and the graded mean integration representation method is used for the defuzzification purpose. Moreover, three different types of probability distributions, namely uniform, triangular and Beta are used for rate of deterioration to find optimal time and associated total inventory cost. The developed model is validated numerically and values of optimal time and total inventory cost are given in tabular form, corresponding to different probability distribution and fuzzy lead-time. The sensitivity analysis is performed on variation of key parameters to observe its effect on the developed model. Graphical representations are also given in support of derived optimal inventory cost vs. time.

scholarly journals Optimization Of Raw Material Inventory Costs In The Food Supply Chain Using Differential Evolution Algorithm

2018 ◽  
Vol 73 ◽  
pp. 13016
Author(s):  
Mara Huriga Priymasiwi ◽  
Mustafid
Keyword(s):  
Supply Chain ◽  
Differential Evolution ◽  
Food Industry ◽  
Differential Evolution Algorithm ◽  
Optimization Method ◽  
Raw Material ◽  
Inventory Cost ◽  
De Algorithm ◽  
Material Requirement ◽  
Total Inventory

The management of raw material inventory is used to overcome the problems occuring especially in the food industry to achieve effectiveness, timeliness, and high service levels which are contrary to the problem of effectiveness and cost efficiency. The inventory control system is built to achieve the optimization of raw material inventory cost in the supply chain in food industry. This research represents Differential Evolution (DE) algorithm as optimization method by minimizing total inventory based on amount of raw material requirement, purchasing cost, saefty stock and reorder time. With the population size, the parameters of mutation control, crossover parameters and the number of iterations respectively 80, 0.8, 0.5, 200. With the amount of safety stock at the company 7213.95 obtained a total inventory cost decrease of 39.95%. Result indicate that the use of DE algorithm help providein efficient amount, time and cost.

scholarly journals Simulation-Based Optimization of a Two-Echelon Continuous Review Inventory Model with Lot Size-Dependent Lead Time

Processes ◽  
2020 ◽  
Vol 8 (9) ◽  
pp. 1014
Author(s):  
Ibrahim Alharkan ◽  
Mustafa Saleh ◽  
Mageed Ghaleb ◽  
Abdulsalam Farhan ◽  
Ahmed Badwelan
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Shop Floor ◽  
Lot Size ◽  
Continuous Review ◽  
Inventory Costs ◽  
Size Dependent ◽  
Simulation Based ◽  
Simulation Based Optimization ◽  
Total Inventory

This study analyzes a stochastic continuous review inventory system (Q,r) using a simulation-based optimization model. The lead time depends on lot size, unit production time, setup time, and a shop floor factor that represents moving, waiting, and lot size inspection times. A simulation-based model is proposed for optimizing order quantity (Q) and reorder point (r) that minimize the total inventory costs (holding, backlogging, and ordering costs) in a two-echelon supply chain, which consists of two identical retailers, a distributor, and a supplier. The simulation model is created with Arena software and validated using an analytical model. The model is interfaced with the OptQuest optimization tool, which is embedded in the Arena software, to search for the least cost lot sizes and reorder points. The proposed model is designed for general demand distributions that are too complex to be solved analytically. Hence, for the first time, the present study considers the stochastic inventory continuous review policy (Q,r) in a two-echelon supply chain system with lot size-dependent lead time L(Q). An experimental study is conducted, and results are provided to assess the developed model. Results show that the optimized Q and r for different distributions of daily demand are not the same even if the associated total inventory costs are close to each other.

scholarly journals MATERIAL REQUIREMENT PLANNING UNTUK MEMENUHI PRODUKSI PADA CV. BANGUN CIPTA ARTHA DI BADUNG

2020 ◽  
Vol 9 (2) ◽  
pp. 426
Author(s):  
I Made Sugita Yasa ◽  
Kastawan Mandala
Keyword(s):  
Inventory Management ◽  
Lot Sizing ◽  
Raw Materials ◽  
Raw Material ◽  
Exact Order ◽  
Lot Size ◽  
Inventory Costs ◽  
Material Requirement Planning ◽  
Material Requirement ◽  
Total Inventory

Inventory management without Material Requirement systems in CV. Bangun Cipta Artha resulted in the lot size for each order of raw materials not optimal. One concept that can be used to plan and control raw materials is the Material Requirement Planning. This study is to determine the number of sizes of raw material orders, the exact order time, the method that produces the lowest cost for each raw material, and the effect of using MRP on inventory costs. This research conducted on 160x200cm spring bed products. Data was analyzed by making production master schedules, determining net requirements, determining lot size, and making MRP tables. Based on the results, the determination the best lot sizing is the order quantiy period which results in a total inventory cost of Rp. 26,475,220 where the total cost is lower, compared to lot for lot method which Rp. 43,464,000. part period balancing Rp. 33,106,576, and conventional method Rp.49,472,912. Keywords: Material Requirement Planning (MRP), Sizing Lot, Lot For Lot, Balancing Part Period, Period Order Quantiy

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