An Improved Fuzzy Inventory Model Under Two Warehouses

The objective of this work is to present an improved inventory system with fuzzy constraints dealing with two warehouses system-own and rented. In the present model, we analyze the system under the consideration of two warehouses and without shortages with the assumptions of the linear demand function (increasing function of time). Generally, in today’s business scenario for sessional products, some constraints like storage cost, deteriorating cost, and ordering cost change with their original values. Therefore, these constraints cannot be assumed to be constant in that situation. Depending on these facts that we handle these costs as a triangular fuzzy number and hence apply the signed distance technique to solve the corresponding problem. The key objective of this work is to determine the optimal inventory level, and inventory time schedule to a minimum of the whole inventory cost. The proposed model is demonstrated with two numerical examples to observe the behavior of constraints with system cost and compare their performance with and without fuzzy environment.

Using Fuzzy Sets and Markov Chain Method to Carry out Inventory Strategies with Different Recovery Levels

In this study, we first analyze the usability of recycling products, and use the fuzzy set method to determine the main impact on recycling items and their corresponding weights by using the Analytic Hierarchy Process (AHP) to identify various impact recycling levels. The Group Decision Supporting System (GDSS) determines the test standards for the recycling rating. It provides a convenient way for recyclers or manufacturers to classify their own products and use fuzzy numbers to select a set of test standards. It can deduce the recovery rate and remanufacturing rate of different recycling processing levels through the Markov chain model to find out the inventory model and total cost. In the numerical analysis, we found that a recycling rate of more than 90% is probably a necessary decision. Since the processing cost of the 100% recovery rate is doubled, the inventory level and total cost will increase with it. Therefore, this study was combined with the reverse logistics method to find the appropriate decision-making strategy and plan, such as the optimal inventory level and recovery rate.

Determination of Optimal Reserve between Two Machines in Series with the Repair Time has Change of Distribution after the Truncation Point

In inventory control, suitable models for various real life systems are constructed with the objective of determining the optimal inventory level. A new type of inventory model using the so-called change of distribution property is analyzed in this paper. There are two machines M1 and M2 in series and the output of M1 is the input of M2. Hence a reserve inventory between M1 and M2 is to be maintained. The method of obtaining the optimal size of reserve inventory, assuming cost of excess inventory, cost of shortage and when the rate of consumption of M2 is a constant, has already been attempted. In this paper, it is assumed that the repair time of M1 is a random variable and the distribution of the same undergoes a change of distribution after the truncation point X0 , which is taken to be a random variable. The optimal size of the reserve inventory is obtained under the above said assumption . Numerical illustrations are also provided.

Inventory Sharing Strategy for Disposable Medical Items between Two Hospitals

When urgent situations occur (e.g., inaccurate demand forecast, traffic accidents, or infectious disease outbreaks), the stock of rescue medical items in the hospital might not be enough to cater to the drastically increased demand. Comparing with placing an expensive emergent replenishment order with dealers, requesting inventory sharing from another hospital with excessive stocks could save time and cost. This paper investigates the operation of the inventory sharing mechanism between two independent hospitals with the consideration of patient behavior. We first identified the inventory decisions when hospitals are under a no-sharing scenario, and derive hospitals’ sharing policies and inventory policies under the sharing scenario. Through numerical experiments, we found that the inventory sharing option is profitable for hospitals compared to emergent replenishment. Furthermore, we investigated the effects of patient behavior, safety inventory level of the hospital, and other cost parameters on inventory decisions. Under the sharing policy, the increase of hospital j’s emergent request rate and safety inventory level increased the optimal initial inventory level of hospital i, while the increase of hospital j’s initial inventory level decreased the optimal inventory level of hospital i. This paper provides more practical suggestions for hospitals’ inventory sharing operation.

A Fuzzy EPQ Model for Non-Instantaneous Deteriorating Items where Production Depends on Demand which is Proportional to Population, Selling Price as well as Advertisement

The inventory system has been drawing more intrigue because this system deals with the decision that minimizes the total average cost or maximizes the total average profit. For any farm, the demand for any items depends upon population, selling price and frequency of advertisement etc. Most of the model, it is assumed that deterioration of any item in inventory starts from the beginning of their production. But in reality, many goods are maintaining their good quality or original condition for some time. So, price discount is availed for defective items. Our target is to calculate the total optimal cost and the optimal inventory level for this inventory model in a crisp and fuzzy environment. Here Holding cost taken as constant and no-shortages are allowed. The cost parameters are considered as Triangular Fuzzy Numbers and to defuzzify the model Signed Distance Method is applied. A numerical example of the optimal solution is given to clarify the model. The changes of different parameters effect on the optimal total cost are presented and sensitivity analysis is given.JEL Classification: C44, Y80, C61Mathematics Subject Classification: 90B05

WAREHOUSHING AND INVENTORY INFORMATION SYSTEM MODEL USING RADIO FREQUENCY IDENTIFICATION (RFID) IN EASTERN NAVAL WAREHOUSING

Eastern Naval Warehousing is the technical implementation elements in charge of receiving, storing, maintaining and distributing supplies to support existing user in the Navy in particular user located in the eastern region. To support the operational activities of the Navy, Eastern Naval Warehousing as service organizations should be supported with the provision of an information system capable of supporting the activities become more optimal provisioning. Speed and accuracy of support provision to user is an indication for the success of a service. Information technology nowadays has grown very rapidly to develop into the current warehousing system. RFID (Radio Frequency Identification) is the process of identifying an object automatically by Radio Frequency. There are two important components of an RFID system is the card (tag) and the reader. Application warehousing information system can be integrated with RFID technology, so that the system can run more optimal for warehousing system. This research aims to design warehousing information system based on RFID in Eastern Naval Warehousing used in processing existing warehousing system to gain optimal in provisioning operations running in Eastern Naval Warehousing to support provisioning activities to meet the requirement of existing user in Navy. Field studies conducted in Eastern Naval Warehousing, aimed to determine the current state of warehousing system that runs to identify existing problems. Furthermore, to process the data, created the design of an information system based on RFID warehousing in software system. This paper get to report out of the goods, report the amount of inventory in real time, the location of goods and EOQ value of goods to determine the optimal inventory level of each item.

The Determination Of Optimal Inventory Using Markov Chain

The complication of inventory is a crucial problem for the company because inventory is one of the valuable assets for the company. The existence of inventory control is needed so the inventory levels that exist within the company is not in very large (optimal) therefore the costs incurred by the company can be suppressed as minimum as possible. PT NM is a company engaged in spare parts, especially branded cars in West Jakarta. The level of inventories of goods owned by these companies is high because The company did not want to experience stock out of stock but on one side the stock is large enough so the costs incurred by companies such as storage costs of goods becomes even greater. In order to control inventory levels, this study uses a Markov Chain method that can identify optimal inventory level and the expectation of profits earned per month by making estimates of the future demand a previous demand. From the research results shows expectation of profit of each state starting from state 2 to state 10 is Rp 13.146,98921; Rp 12.246,94064; Rp 11.346,61466; Rp 10.444,64569; Rp 9.534,074035; Rp 8.584,408534; Rp 7.484,413248; Rp 5.913,288143; Rp 3.211,609986,-. While the profit expectations that earned by the company per month is Rp 694.233,333, and the optimal inventory level is 50.

Model Predictive Control of a Forecasting Production System with Deteriorating Items

The authors consider in this paper an integrated forecasting production system of the tracking type. The demand rate during a certain period depends on the demand rate of the previous period. Also, the demand rate depends on the inventory level. Items on the shelves are subject to deterioration. Using a model predictive control approach, the authors obtain the optimal production rate, the optimal inventory level, the optimal demand rate, and the optimal objective function value, explicitly in terms of the system parameters. A numerical example is presented.