Inventory Management with Demand Substitution Using a New Simulation Approach PDF Download

Author: Hongsuk Yang
Publisher:
ISBN:
Category : Inventory control
Languages : en
Pages : 320

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Author: J. Christian Lang
Publisher: Springer Science & Business Media
ISBN: 3642042473
Category : Business & Economics
Languages : en
Pages : 271

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Book Description
Quantitativeapproachesforsolvingproductionplanningandinventorymanagement problems in industry have gained growing importance in the past years. Due to the increasinguse of AdvancedPlanningSystems, a widespreadpracticalapplicationof the sophisticated optimization models and algorithms developed by the Production Management and Operations Research community now seem within reach. The possibility that productscan be replaced by certain substitute productsexists in various application areas of production planning and inventory management. Substitutions can be useful for a number of reasons, among others to circ- vent production and supply bottlenecks and disruptions, increase the service level, reduce setup costs and times, and lower inventories and thereby decrease ca- tal lockup. Considering the current trend in industry towards shorter product life cycles and greater product variety, the importance of substitutions appears likely to grow. Closely related to substitutions are ?exible bills-of-materials and recipes in multi-level production systems. However, so far, the aspect of substitutions has not attracted much attention in academic literature. Existing lot-sizing models matching complex requirements of industrial optimization problems (e.g., constrained capacities, sequence-dependent setups, multiple resources) such as the Capacitated Lot-Sizing Problem with Sequence-Dependent Setups (CLSD) and the General Lot-Sizing and Scheduling Problem for Multiple Production Stages (GLSPMS) do not feature in substitution options.

Author: Bret Rothschild Myers
Publisher:
ISBN:
Category : Business
Languages : en
Pages : 326

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Author:
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 632

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Abstracts of dissertations available on microfilm or as xerographic reproductions.

Author: Karin Möllering
Publisher: Kölner Wissenschaftsverlag
ISBN: 3937404341
Category :
Languages : en
Pages : 196

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Book Description

Author: J. Christian Lang
Publisher: Springer
ISBN: 9783642042461
Category : Business & Economics
Languages : en
Pages : 260

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Book Description
Quantitativeapproachesforsolvingproductionplanningandinventorymanagement problems in industry have gained growing importance in the past years. Due to the increasinguse of AdvancedPlanningSystems, a widespreadpracticalapplicationof the sophisticated optimization models and algorithms developed by the Production Management and Operations Research community now seem within reach. The possibility that productscan be replaced by certain substitute productsexists in various application areas of production planning and inventory management. Substitutions can be useful for a number of reasons, among others to circ- vent production and supply bottlenecks and disruptions, increase the service level, reduce setup costs and times, and lower inventories and thereby decrease ca- tal lockup. Considering the current trend in industry towards shorter product life cycles and greater product variety, the importance of substitutions appears likely to grow. Closely related to substitutions are ?exible bills-of-materials and recipes in multi-level production systems. However, so far, the aspect of substitutions has not attracted much attention in academic literature. Existing lot-sizing models matching complex requirements of industrial optimization problems (e.g., constrained capacities, sequence-dependent setups, multiple resources) such as the Capacitated Lot-Sizing Problem with Sequence-Dependent Setups (CLSD) and the General Lot-Sizing and Scheduling Problem for Multiple Production Stages (GLSPMS) do not feature in substitution options.

Author: Khosrow-Pour, Mehdi
Publisher: IGI Global
ISBN: 1466658894
Category : Computers
Languages : en
Pages : 7972

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Book Description
"This 10-volume compilation of authoritative, research-based articles contributed by thousands of researchers and experts from all over the world emphasized modern issues and the presentation of potential opportunities, prospective solutions, and future directions in the field of information science and technology"--Provided by publisher.

Author: Neal Norman McCollom
Publisher:
ISBN:
Category : Inventory control
Languages : en
Pages : 550

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Book Description

Author: Pengfei Guo
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Problem Definition: We consider a setting where firms sell the same perishable products in two phases during each period, an early-bird-discount phase and a regular-price phase. When the discounted product is stocked-out, an early-bird customer either purchases the regular-price product as the substitute (called inter-temporal substitution) or simply leaves.Academic/Practical Relevance: We study the inventory managers' optimal decisions on the total inventory level and the inventory level reserved for early-bird sales, where the demands for the early-bird-discount product and the regular-price product and the inter-temporal substitution probability are unknown and have to be learned from historical sales data.Methodology: We investigate four information scenarios based on whether or not lost sales are observable and substitution-induced demands can be separated out. We then build a Bayesian updating framework to learn both the demand distribution parameter and the substitution probability.Results: We find that the classic "stock more" result (that is, the Bayesian-optimal inventory level shall be kept higher than the myopic one) may or may not hold here, depending on the relative magnitude of the following four driving forces. One, the unobservability of lost sales requires "stock more". Two, the tangling of substitution demand and primary demand in the regular sales phase. To better observe the primary demand requires "stock more" for the discounted product, which reduces the substitution. Three, to better observe the substitution probability, one shall "stock less" the discounted product so that substitution happens more frequently. Four, compared to the regular-price product, the discounted product has a lower profit margin, dampening the firm's "stock more'' incentive.Managerial Implications: Our results shed light on the inventory manager's optimal inventory decisions with Bayesian learning, i.e., how much inventory allocated for early-bird-discount sales and how much for the regular-price sales when demand and substitution probability information is limited. Our results also complement the existing Bayesian inventory management literature by identifying new driving forces and deriving a general upper bound for the optimal solution.

Author: Khosrow-Pour, D.B.A., Mehdi
Publisher: IGI Global
ISBN: 1522573631
Category : Business & Economics
Languages : en
Pages : 1482

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Book Description
Businesses consistently work on new projects, products, and workflows to remain competitive and successful in the modern business environment. To remain zealous, businesses must employ the most effective methods and tools in human resources, project management, and overall business plan execution as competitors work to succeed as well. Advanced Methodologies and Technologies in Business Operations and Management provides emerging research on business tools such as employee engagement, payout policies, and financial investing to promote operational success. While highlighting the challenges facing modern organizations, readers will learn how corporate social responsibility and utilizing artificial intelligence improve a company’s culture and management. This book is an ideal resource for executives and managers, researchers, accountants, and financial investors seeking current research on business operations and management.