Design of a supply chain network for determining the optimal number of items at the inventory groups based on ABC analysis: a comparison of exact and meta-heuristic methods

Abdolazimi, Omid; Esfandarani, Mitra Salehi; Shishebori, Davood

doi:10.1007/s00521-020-05428-y

Cited by 27 publications

(14 citation statements)

References 24 publications

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“…It also means one can improve the transportation fleet, making it more efficient and increasing their sustainability level through better planning in terms of future movement. Similar conceptions, which connect forecasting with transportation planning from the perspective of 3PL, are already considered in the literature [34], but usually, these kinds of consideration focused only on the near range of activity.…”

Section: Resultsmentioning

confidence: 99%

“…Inventory management is an area of logistics coordination, on the one hand, aiming to reduce unforeseen fluctuations in demand and ensure an appropriate level of customer service in DN, and on the other hand, an area that largely depends on the adopted strategies for planning and implementing demand plans [34]. Proper handling with inventory management also has a positive impact on supply chain sustainability [35] because the coordination in the case of inventory management allows (among others) for a reduction in the supply level in the whole network and to minimize the waste in stocks.…”

Section: Inventory Management and Transportation Planning By 3pl In T...mentioning

confidence: 99%

“…The choice of mentioned methods was indicated by the current market, where the top algorithms for demand forecasting are the methods based on ARIMA [52], machine learning [53] and neural networks [54]. However, there are a lot of traditional methods connected with time series exponential smoothing [34], which are well known and have been used in forecasting systems for a long time. The process of forecasting takes place during the implementation of the previously mentioned DN.…”

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confidence: 99%

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Logistics Coordination Based on Inventory Management and Transportation Planning by Third-Party Logistics (3PL)

Kmiecik

2022

Sustainability

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Currently, there is still a strong trend in research and in the market connected with the role of 3PL (third-party logistics) companies and the trend of developing and creating coordination in logistics networks. The most important issue for the following paper is the examination of the 3PL enterprise, which is able to create the demand forecasts to gain the functions of logistics coordination in the fields of inventory management and transportation planning. This research paper focuses on showing the demand forecasting tool results for 29 chosen distribution networks (in this paper, the traditional forecasting methods were used based on time series exponential smoothing, ARIMA, machine learning and neural-network-based methods, created in the R programming environment). In the next steps, the forecasting results were compared in the conditions of transportation planning and inventory management (in the conditions of “future” dynamic ABC analysis). The forecasting function supports the inventory management and transportation planning activity of 3PL as a key element of logistics coordination in distribution networks. The proper way to transfer the results of forecasting to an ABC analysis and transportation planning concept is to create a cloud-based system supported by data from the WMS (warehouse management system), while providing the possibility of results visualization by using some BI (business intelligence) solutions or different tools to create managerial information dashboards. Currently, one of the most efficient models connected with logistics coordination is the centralized network with 3PL responsible for planning and executing logistics processes with the creation of additional value. As such, 3PL is able to create a similar forecast for different types of DN and with different aggregations (per SKU or per recipient). It could support coordination in DN from the point of view of inventory management and transportation planning.

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Section: Resultsmentioning

confidence: 99%

Section: Inventory Management and Transportation Planning By 3pl In T...mentioning

confidence: 99%

mentioning

confidence: 99%

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Logistics Coordination Based on Inventory Management and Transportation Planning by Third-Party Logistics (3PL)

Kmiecik

2022

Sustainability

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“…The results depicted that a strong positive and significant relationship exists between ABC analysis on product quality of De United Foods Industries Limited. In the paper by Abdolazimi et al (2020a), a bi-objective mathematical model was suggested to enhance the inventory grouping based on ABC analysis. The proposed model concurrently optimized the service level, the number of inventory groups, and the number of assigned items.…”

Section: A) Abc Analysis For the Inventory Control Of Stockmentioning

confidence: 99%

Designing a new mathematical model based on ABC analysis for inventory control problem: A real case study

et al. 2021

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In modern business today, organizations that hold large numbers of inventory items, do not find it economical to make policies for the management of individual inventory items. Managers, thus, need to classify these items according to their importance and fit each item to a certain asset class. The method of grouping and inventory control available in traditional ABC has several disadvantages. These shortcomings have led to the development of an optimization model in the present study to improve the grouping and inventory control decisions in ABC. Moreover, it simultaneously optimizes the existing business relationships among revenue, investment in inventory and customer satisfaction (through service levels) as well as a company's budget for inventory costs. In this paper, a mathematical model is presented to classify inventory items, taking into account significant profit and cost reduction indices. The model has an objective function to maximize the net profit of items in stock. Limitations such as budget even inventory shortages are taken into account too. The mathematical model is solved by the Benders decomposition and the Lagrange relaxation algorithms. Then, the results of the two solutions are compared. The TOPSIS technique and statistical tests are used to evaluate and compare the proposed solutions with one another and to choose the best one. Subsequently, several sensitivity analyses are performed on the model, which helps inventory control managers determine the effect of inventory management costs on optimal decision making and item grouping. Finally, according to the results of evaluating the efficiency of the proposed model and the solution method, a real-world case study is conducted on the ceramic tile industry. Based on the proposed approach, several managerial perspectives are gained on optimal inventory grouping and item control strategies.

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“…From the review of studies, as well as papers (Douissa & Jabeur, 2020;Abdolazimi et al, 2020), it can be seen that quantitative and value analysis is most frequently used as a criterion. When applying ABC analysis based on a multi-criteria function, two problems can arise: how to select relevant criteria and how to determine their significance.…”

Section: Introductionmentioning

confidence: 99%

A Novel Fuzzy McDm Model for Inventory Management in Order to Increase Business Efficiency

Vukasović

Gligović

Terzić

et al. 2021

Technological and Economic Development of Economy

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Design of a supply chain network for determining the optimal number of items at the inventory groups based on ABC analysis: a comparison of exact and meta-heuristic methods

Cited by 27 publications

References 24 publications

Logistics Coordination Based on Inventory Management and Transportation Planning by Third-Party Logistics (3PL)

Logistics Coordination Based on Inventory Management and Transportation Planning by Third-Party Logistics (3PL)

Designing a new mathematical model based on ABC analysis for inventory control problem: A real case study

A Novel Fuzzy McDm Model for Inventory Management in Order to Increase Business Efficiency

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