scholarly journals Solving the one-warehouse N-retailers problem with stochastic demand: An inter-ratio policies approach

2021 ◽  
pp. 131-142
Author(s):  
Gabriela Chavarro ◽  
Matthaus Fresen ◽  
Esneyder Rafael González ◽  
David Barrera Ferro ◽  
Héctor López-Ospina
Keyword(s):  
Cost Savings ◽  
Function Evaluation ◽  
Normal Density ◽  
Single Product ◽  
Total Cost ◽  
Stochastic Version ◽  
Normal Density Function ◽  
Stochastic Solution ◽  
Random Instances ◽  
The One

In this paper, we consider a two-echelon supply chain in which one warehouse provides a single product to N retailers, using integer-ratio policies. Deterministic version of the problem has been widely studied. However, this assumption can lead to inaccurate and ineffective decisions. In this research, we tackle the stochastic version of two-echelon inventory system by designing an extension of a well-known heuristic. This research considers customer demands as following a normal density function. A set of 240 random instances was generated and used in evaluating both the deterministic and stochastic solution approaches. Due to the nature of the objective function, evaluation was carried out via Monte Carlo simulation. For variable demand settings, computational experiments shows that: i) the use of average demand to define the inventory policy implies an underestimation of the total cost and ii) the newly proposed method offers cost savings.

Future View: Evolving the Measurement of Best Customer Value from Using a Total Cost of Ownership to Total Profit Added Methodology

2017 ◽  
Vol 3 (2) ◽  
pp. 210-216 ◽  
Author(s):  
Todd Snelgrove
Keyword(s):  
Customer Value ◽  
Cost Savings ◽  
Business Case ◽  
Total Cost Of Ownership ◽  
Total Cost ◽  
Cost Of Ownership ◽  
Best Value ◽  
Total Profit ◽  
The One ◽  
Business To Business

Business-to-business firms know that being able to obtain a higher price than competitors and to keep customers happy they must deliver something the customer perceives as value. To support customers to be able and willing to pay this value, a customized, quantified business case needs to be developed to allow the customer to see the payback for whatever investment is being requested versus other alternatives. A previous methodology to do this was to look at the total cost of ownership (TCO) of the proposed purchase over its life. However, too often, TCO became the total cost of acquisition by procurement people (missing the installation, operational and disposal phases, which is often 8 times more important than the landed cost). The next evolution is to look at a more holistic measurement of value that takes into account not only cost savings but all improvements, such as risk reductions, increased revenue and customer satisfaction. Only then can buyers and sellers make decisions on who is creating the best value and what someone should be willing to pay for it. Anyone who can demonstrate and document the greatest value surplus is the one delivering the best value.

scholarly journals A MEAN FIELD GAME ANALYSIS OF SIR DYNAMICS WITH VACCINATION

2020 ◽  
pp. 1-18
Author(s):  
Josu Doncel ◽  
Nicolas Gast ◽  
Bruno Gaujal
Keyword(s):  
Mean Field ◽  
Vaccination Strategy ◽  
Game Analysis ◽  
Total Cost ◽  
Mean Field Game ◽  
Vaccination Behavior ◽  
Switching Curve ◽  
The One ◽  
The Cost ◽  
Vaccination Period

We analyze a mean field game model of SIR dynamics (Susceptible, Infected, and Recovered) where players choose when to vaccinate. We show that this game admits a unique mean field equilibrium (MFE) that consists in vaccinating at a maximal rate until a given time and then not vaccinating. The vaccination strategy that minimizes the total cost has the same structure as the MFE. We prove that the vaccination period of the MFE is always smaller than the one minimizing the total cost. This implies that, to encourage optimal vaccination behavior, vaccination should always be subsidized. Finally, we provide numerical experiments to study the convergence of the equilibrium when the system is composed by a finite number of agents ( $N$ ) to the MFE. These experiments show that the convergence rate of the cost is $1/N$ and the convergence of the switching curve is monotone.

scholarly journals Content and Access Provision in a Discrete Competition Model

ORiON ◽  
2021 ◽  
Vol 37 (2) ◽  
Author(s):  
Petrus Potgieter ◽  
Bronwyn Howell
Keyword(s):  
Real Life ◽  
Consumer Surplus ◽  
Cost Savings ◽  
Product Category ◽  
Approximate Solutions ◽  
Competition Model ◽  
Differentiated Products ◽  
Single Product ◽  
Market Outcomes ◽  
Product Categories

The non-rival, non-excludable and infinitely expansible characteristics of digital goods with marginal cost of zero strongly favours the use of bundling strategies. Theoretical tractability requires most models in the current literature to make highly stylized assumptions, rarely observed or anticipated in the real-life situations, motivating inquiry. This paper considers a competition model in which: * the firms, consumers and differentiated products are finite in number; * prices are discrete and not continuous; * consumers may purchase multiple items in a single product category where the degree of complementarity or substitutability of the product categories can also vary across consumers; and * where consumer-specific cost savings are obtained when purchasing multiple items from the same firm. Approximate solutions are obtained through numerical simulation. Firms act in concert to maximise the total firm revenue. Our main finding is that the interplay between maximal firm revenue, consumer surplus and prices is very complex and that high firm revenue and high consumer surplus are not antithetic. It suggests also that consumer surplus and market concentration are not necessarily related. Many market outcomes that are observed may be due to chance rather than design as diverse outcomes can accompany situations that are, to the firms, difficult to distinguish.

scholarly journals Point-Symmetric Multivariate Density Function and Its Decomposition

2014 ◽  
Vol 2014 ◽  
pp. 1-6
Author(s):  
Kiyotaka Iki ◽  
Sadao Tomizawa
Keyword(s):  
Density Function ◽  
Point Symmetry ◽  
Normal Density ◽  
Multivariate Normal ◽  
Normal Density Function ◽  
Multivariate Density

For aT-variate density function, the present paper defines the point-symmetry, quasi-point-symmetry of orderk(<T), and the marginal point-symmetry of orderkand gives the theorem that the density function isT-variate point-symmetric if and only if it is quasi-point-symmetric and marginal point-symmetric of orderk. The theorem is illustrated for the multivariate normal density function.

scholarly journals Outpatient Treatment in Low-Risk Pulmonary Embolism Patients Receiving Direct Acting Oral Anticoagulants Is Associated With Cost Savings

2020 ◽  
Vol 26 ◽  
pp. 107602962093735
Author(s):  
Raein Ghazvinian ◽  
Johan Elf ◽  
Sofia Löfvendahl ◽  
Jan Holst ◽  
Anders Gottsäter
Keyword(s):  
Pulmonary Embolism ◽  
Outpatient Treatment ◽  
Oral Anticoagulants ◽  
Direct Oral Anticoagulants ◽  
Cost Savings ◽  
Severity Index ◽  
Low Risk ◽  
Potential Cost ◽  
Total Cost ◽  
Outpatient Group

Direct oral anticoagulants (DOAC) are first line treatment for pulmonary embolism (PE). Treatment of acute PE is traditionally hospital based and associated with high costs. The aims of this study were to evaluate potential cost savings with outpatient DOAC treatment compared to inpatient DOAC treatment in patients with low risk PE. A retrospective study in patients with DOAC treated low risk PE (simplified pulmonary severity index [sPESI] ≤ 1) admitted to 8 hospitals during 2013-2015. Health care costs were compared in 223(44%) patients treated as outpatients and 287(56%) treated in hospital. Total cost per patient was 8293 EUR in the inpatient group, and 2176 EUR in the outpatient group (p < 0.001). Total costs for inpatients were higher (p < 0.001) compared to outpatients in both subgroups with sPESI 0 and 1. In multivariate analysis, type of treatment (in- or outpatient, p = < 0.001) and sPESI group (0 or 1, p = < 0.001) were associated with total cost below or above median, whereas age (p = 0.565) and gender (p = 0.177) was not. Adherence to guidelines recommending outpatient treatment with DOAC in patients with low risk PE enables significant savings.

Early Tracheal Extubation after Coronary Artery Bypass Graft Surgery Reduces Costs and Improves Resource Use

1996 ◽  
Vol 85 (6) ◽  
pp. 1300-1310. ◽  
Author(s):  
Davy C. H. Cheng ◽  
Jacek Karski ◽  
Charles Peniston ◽  
Ganesh Raveendran ◽  
Buvanendran Asokumar ◽  
...  
Keyword(s):  
Cardiac Surgery ◽  
Resource Use ◽  
Anesthetic Management ◽  
Artery Bypass ◽  
Bypass Graft ◽  
Cost Savings ◽  
Tracheal Extubation ◽  
Early Extubation ◽  
Total Cost ◽  
Cabg Surgery

Background Economics has caused the trend of early tracheal extubation after cardiac surgery, yet no prospective randomized study has directly validated that early tracheal extubation anesthetic management decreases costs when compared with late extubation after cardiac surgery. Methods This prospective, randomized, controlled clinical trial was designed to evaluate the cost savings of early (1-6 h) versus late tracheal extubation (12-22 h) in patients after coronary artery bypass graft (CABG) surgery. The total cost for the services provided for each patient was determined for both the early and late groups from hospital admission to discharge home. All costs applicable to each of the services were classified into direct variables, direct fixed costs, and overhead (an indirect cost). Physician fees and heart catheterization costs were included. The total service cost was the sum of unit workload and overhead costs. Results One hundred patients having elective CABG who were younger than 75 yr were studied. Including all complications, early extubation (n = 50) significantly reduced cardiovascular intensive care unit (CVICU) costs by 53% (P &lt; 0.026) and the total CABG surgery cost by 25% (P &lt; 0.019) when compared with late extubation (n = 50). Forty-one patients (82%) in each group were tracheally extubated within the defined period. In the early extubation group, the actual departmental cost savings in CVICU nursing and supplies was 23% (P &lt; 0.005), in ward nursing and supplies was 11% (P &lt; 0.05), and in respiratory therapy was 12% (P &lt; 0.05). The total cost savings per patient having CABG was 9% (P &lt; 0.001). Further cost savings using discharge criteria were 51% for CVICU nursing and supplies (P &lt; 0.001), 9% for ward nursing and supplies (P &lt; 0.05), and 29% for respiratory therapy (P &lt; 0.001), for a total cost savings per patient of 13% (P &lt; 0.001). Early extubation also reduced elective case cancellations (P &lt; 0.002) without any increase in the number of postoperative complications and readmissions. Conclusions Early tracheal extubation anesthetic management reduces total costs per CABG surgery by 25%, predominantly in nursing and in CVICU costs. Early extubation reduces CVICU and hospital length of stay but does not increase the rate or costs of complications when compared with patients in the late extubation group. It shifts the high CVICU costs to the lower ward costs. Early extubation also improves resource use after cardiac surgery when compared with late extubation.

Distribution of the branching-process population among generations

1971 ◽  
Vol 8 (4) ◽  
pp. 655-667 ◽  
Author(s):  
M. L. Samuels
Keyword(s):  
Normal Form ◽  
Density Function ◽  
Branching Process ◽  
Random Variables ◽  
Normal Density ◽  
Asymptotically Linear ◽  
Random Functions ◽  
Normal Density Function ◽  
Age Dependent ◽  
The Mean

SummaryIn a standard age-dependent branching process, let Rn(t) denote the proportion of the population belonging to the nth generation at time t. It is shown that in the supercritical case the distribution {Rn(t); n = 0, 1, …} has asymptotically, for large t, a (non-random) normal form, and that the mean ΣnRn(t) is asymptotically linear in t. Further, it is found that, for large n, Rn(t) has the shape of a normal density function (of t).Two other random functions are also considered: (a) the proportion of the nth generation which is alive at time t, and (b) the proportion of the nth generation which has been born by time t. These functions are also found to have asymptotically a normal form, but with parameters different from those relevant for {Rn(t)}.For the critical and subcritical processes, analogous results hold with the random variables replaced by their expectations.

An Improvement Inspection Policy for C2F6 Gas Used in Semiconductor Manufacturing

2013 ◽  
Vol 389 ◽  
pp. 175-182
Author(s):  
I Ping Huang ◽  
Chiuh Cheng Chyu
Keyword(s):  
Cost Reduction ◽  
Semiconductor Manufacturing ◽  
Geometric Distribution ◽  
Estimation Method ◽  
Cost Savings ◽  
Influence Diagram ◽  
Product Failure ◽  
Total Cost ◽  
Failure Cost ◽  
Inspection Policy

This research proposes an inspection policy aiming to improve the application of C2F6 in semiconductor manufacturing. For the gas product C2F6, total inspection is commonly employed by the producers before it is sent to downstream manufacturers. The study develops a Bayesian rectifying inspection sampling model with the objective of minimizing expected total cost from the producers standpoint. The factors that influence the total cost include gas product quality, inspection cost, sampling information, product failure cost, inspection accuracy, and decision on the remaining units. Influence diagram is used to represent the problem and derive the total objective function. The application of the model is presented via a real world company using the last four years of data. The proposed inspection policy yields an average of 15% cost savings using a cost reduction estimation method based on hyper-geometric distribution.

OPTIMALISASI PENGADAAN BAHAN BAKU DALAM RANGKA MEMINIMALKAN TOTAL BIAYA PERSEDIAAN TEMBAKAU PADA PT BENTOEL INTERNATIONAL INVESTAMA DI MALANG

2019 ◽  
Vol 2 (1) ◽  
pp. 23
Author(s):  
Dwi Dayanti Oktavia ◽  
Peni Indarwati ◽  
Marhaerni Fikky Febriananta
Keyword(s):  
Production Process ◽  
Raw Materials ◽  
Cost Savings ◽  
Optimal Level ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Total Cost ◽  
The Cost

A company should maintain an adequate or optimal level of inventory so that production operations can run smoothly and efficiently. What needs to be considered in this case is that the required raw materials are always available, so as to guarantee the smooth production process. However, the amount of inventory should not be too much because this will harm the company. Too much inventory will increase maintenance costs and storage costs in the warehouse. In addition, the amount of inventory that is too much can also increase the likelihood of losses due to damage and loss of quality that can reduce company profits. And vice versa, the amount of inventory that is too small will hamper the production process so that the company will suffer a lot of losses including: the machine does not work as it should, many workers are unemployed, and can even result in the cessation of the production process. This study aims to determine how the calculation of raw materials, what is the total cost of raw material inventory if the company establishes an EOQ (Economic Order Quantity) policy, what is the limit or point of ordering raw materials needed by the company during the grace period at PT.Bentoel International Investama in Malang.The population used is the supply of tobacco raw materials at PT. Bentoel International Investama, where this research was conducted by interview and documentation. The variable in this study is the supply of raw materials. The analysis used is the EOQ (Economic Order Quantity) method.The results of the study, if using the EOQ method in 2017 the cost savings of Rp 40,290,256,931, while in 2018 the cost savings of Rp. 44,388,428,549. Thus there is a difference between inventory policies carried out according to the company with EOQ calculations. It can be concluded that the supply of raw materials every year has increased raw materials, the frequency of purchasing raw materials when using raw materials when using the EOQ method is 2 times in one period, the limit for ordering raw materials needed by companies when using the 2017 EOQ method is 218,176.7 kg, while in 2018 it will be 210,853 kg. The total cost of raw material inventory calculated according to EOQ is less than that spent by the company, so there is a cost savings of raw material inventory

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