Efficient inventory control for imperfect quality items

Alamri, Adel A.; Harris, Irina; Syntetos, Aris A.

doi:10.1016/j.ejor.2016.03.058

Cited by 50 publications

(24 citation statements)

References 60 publications

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“…The right inventory system can be used for tracking, recording, and providing information related to the product. The inventory system has an important role in monitoring the condition of the product [2]. One of the methods that governs inventory is the Vendor Managed Inventory (VMI).…”

Section: Introductionmentioning

confidence: 99%

Inventory Control System by Using Vendor Managed Inventory (VMI)

2018

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The inventory control system has a strategic role for the business in managing inventory operations. Management of conventional inventory creates problems in the stock of goods that often runs into vacancies and excess goods at the retail level. This study aims to build inventory control system that can maintain the stability of goods availability at the retail level. The implementation of Vendor Managed Inventory (VMI) method on inventory control system provides transparency of sales data and inventory of goods at retailer level to supplier. Inventory control is performed by calculating safety stock and reorder point of goods based on sales data received by the system. Rule-based reasoning is provided on the system to facilitate the monitoring of inventory status information, thereby helping the process of inventory updates appropriately. Utilization of SMS technology is also considered as a medium of collecting sales data in real-time due to the ease of use. The results of this study indicate that inventory control using VMI ensures the availability of goods ± 70% and can reduce the accumulation of goods ± 30% at the retail level.

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Section: Introductionmentioning

confidence: 99%

Inventory Control System by Using Vendor Managed Inventory (VMI)

2018

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“…Shari et al [20] studied the e ect of inspection errors on inventory models with imperfect items and partial backordering shortage. Alamri et al [21] evaluated the impact of learning on the inventory model with imperfect items. Chang et al [22] developed an extension to the inventory model with imperfect items considering permissible delays in payments and inspection errors.…”

Section: Introductionmentioning

confidence: 99%

Optimal Lot Size in a Manufacturing System with Imperfect Raw Materials and Defective Finished Products

Mokhtari

2018

Scientia Iranica

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In real-world manufacturing systems, it is inevitable to encounter imperfect raw materials and generate defective nished products. In order to cope with these practical problems, this paper studies a manufacturer that orders raw materials from an external source (supplier) and, then, produces a nished product. The raw materials contain imperfect quality items; in addition, the production system is defective. The imperfect raw materials are sold after the screening process, while the defective nished products go under a further rework process. It is also assumed that the defective rate of a machine is a random variable, resulting in three possible cases regarding the occurrence of backordering shortage. The aim is to determine economic order/production lot sizes for each case in such a way that the total cost of the system is minimized. The optimal closed-form solution is derived for each case separately. Moreover, the applicability of the proposed manufacturing model is illustrated via a numerical example.

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“…In any case, while the poverty rate in Europe is increasing due to the economic crisis and more people need to go to Food Banks to collect products for covering their daily necessities [49], at the same time millions of tons of edibles are landfilled in European countries every week [20,6]. This is a concern for governments, NGOs and society at large.…”

Section: Introductionmentioning

confidence: 99%

Effects of dynamic pricing of perishable products on revenue and waste

Adenso‐Díaz

Lozano

Palacio

2017

Applied Mathematical Modelling

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This paper deals with dynamic price strategies to reduce food and other perishable products spoilage. A deterministic mathematical model is proposed to study the influence of a number of factors, such as price elasticity of demand, age-sensitivity of demand and age profile of initial inventory, on revenue and spoilage. A parametric, bi-objective approach is considered with the aim of estimating the existing trade-offs between revenues and spoilage. The effects of price discounting are different in each scenario and also depend on the speed at which the price is reduced as it ages. Although a dynamic price strategy helps reduce spoilage, its effect on total revenue depends heavily on the scenario. In some specific cases identified below in the paper, total revenue can slightly increase or, at least, maintain its level. In other scenarios, the spoilage reduction comes as a loss in total revenue that can go from small to significant, depending on the scenario and the speed of the price discounting strategy. The proposed approach allows the quantification of the available trade-offs for each scenario. It also allows the analysis of the age distribution of units sold and their respective revenue contribution.

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Efficient inventory control for imperfect quality items

Cited by 50 publications

References 60 publications

Inventory Control System by Using Vendor Managed Inventory (VMI)

Inventory Control System by Using Vendor Managed Inventory (VMI)

Optimal Lot Size in a Manufacturing System with Imperfect Raw Materials and Defective Finished Products

Effects of dynamic pricing of perishable products on revenue and waste

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