Managing inventory and service levels in a safety stock‐based inventory routing system with stochastic retailer demands

Yadollahi, Ehsan; Aghezzaf, El‐Houssaine; Raa, Birger

doi:10.1002/asmb.2291

Cited by 9 publications

(7 citation statements)

References 2 publications

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“…To achieve inventory optimization, the level of safety stock should be kept at an appropriate level [54]. The safety stock statistical model calculation can be used when the replenishment time is confirmed and stock consumption is random [55,56]. The safety stock equation is as follows:…”

Section: Inventory Optimizationmentioning

confidence: 99%

Integrated Smart Warehouse and Manufacturing Management with Demand Forecasting in Small-Scale Cyclical Industries

Tang

Lau

et al. 2022

Machines

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In the context of the global economic slowdown, demand forecasting, and inventory and production management have long been important topics to the industries. With the support of smart warehouses, big data analytics, and optimization algorithms, enterprises can achieve economies of scale, and balance supply and demand. Smart warehouse and manufacturing management is considered the culmination of recently advanced technologies. It is important to enhance the scalability and extendibility of the industry. Despite many researchers having developed frameworks for smart warehouse and manufacturing management for various fields, most of these models are mainly focused on the logistics of the product and are not generalized to tackle the specific manufacturing problem facing in the cyclical industry. Indeed, the cyclical industry has a key problem: the big risk which high sensitivity poses to the business cycle and economic recession, which is difficult to foresee. Despite many inventory optimization approaches being proposed to optimize the inventory level in the warehouse and facilitate production management, the demand forecasting technique is seldom focused on the cyclic industry. On the other hand, management approaches are usually based on the complex logistics process instead of integrating the inventory level of the stock, which is very crucial to composing smart warehouses and manufacturing. This research study proposed a digital twin framework by integrating the smart warehouse and manufacturing with the roulette genetic algorithm for demand forecasting in the cyclical industry. We also demonstrate how this algorithm is practically implemented for forecasting the demand, sustaining manufacturing optimization, and achieving inventory optimization. We adopted a small-scale textile company case study to demonstrate the proposed digital framework in the warehouse and demonstrate the results of demand forecasting and inventory optimization. Various scenarios were conducted to simulate the results for the digital twin. The proposed digital twin framework and results help manufacturers and logistics companies to improve inventory management. This study has important theoretical and practical significance for the management of the cyclical industry.

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Section: Inventory Optimizationmentioning

confidence: 99%

Integrated Smart Warehouse and Manufacturing Management with Demand Forecasting in Small-Scale Cyclical Industries

Tang

Lau

et al. 2022

Machines

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“…Gümüs et al (2008) provided another approach, seeking a win-win relationship between the customer and the supplier by finding a point of equilibrium between the inventory managed by the latter (the vendor-managed inventory, or VMI) and the quantity required by the former. Yadollahi et al (2017) proposed deterministic models strive to optimize the safety stock levels in line with the planned service levels at the retailers. Toptal & Çetinkaya (2015) examined the optimal length of the selling period in the context of a novel inventory replenishment problem faced by a supplier of a new, trendy, and relatively expensive product with a short life.…”

Section: Introductionmentioning

confidence: 99%

Untitled

2019

Eur. Account. Manag. Rev.

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The European Accounting and Management Review (EAMR) is a peer-reviewed journal that aims to contribute to the advancement of scientific and technical knowledge in the fields of accounting and management, through publishing of research papers, including those which analyze problems of the research activities in these disciplines. EAMR articles are built in a framework of a theory and contribute to management practice using a variety of empirical methods (quantitative, qualitative, field, laboratory, meta-analytic, and combination). Research papers written from the theoretical and methodological perspective of other disciplines-such as economics, industrial engineering, law, management science, operations and other social sciences-are accepted as long as they include an interface with accounting and management and contribute to the study and understanding of organizations. Work published should be of interest of accountants and organizational experts, whether they work in industry, the public sector, in consulting, or in academic institutions. EAMR is published by the Catalan Association of Accounting and Management (Associació Catalana de Comptabilitat i Direcció, ACCID), an association founded in 2002 with the intention of becoming a nexus for professionals and academics working in the field of accounting and management. Currently, ACCID has more than 10.000 associate members and is oriented towards the following objectives: Improving the transparency of financial information, the promotion of best practices in the disclosure of financial information. The existence of a platform for debate and opinion about accounting issues, the promotion of research and the dissemination of new developments regarding accounting and management and, finally, the organization of conferences, seminars and conferences. EAMR provides authors and academics many benefits, such as free PDFs of the articles published, special discounts for ACCID publications and much more.

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“…Furthermore, these problems were widely used to model different economic and technical systems . Among them, a flood control reservoir system design and managing inventory and service levels in a safety stock‐based inventory routing system can be noted. In simple cases, the problem with probabilistic constraints can be reduced to a deterministic equivalent .…”

Section: Introductionmentioning

confidence: 99%

An algorithm to solve a quantile optimization problem with loss function having a separable structure, and its application to an aerospace problem

Ivanov

Кибзун

Stepanova

2019

Appl Stoch Models Bus & Ind

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A quantile minimization problem with loss function having separable structure is considered. The distribution of the random parameters is assumed to be normal. To solve the problem, the confidence method and the sample average approximation method are used. Thus, the problem is reduced to a combinatorial one, which is solved by using the variable neighborhood search. The suggested algorithm is applied to optimization of runway area. Parameters of the runway are selected to minimize the area taking into account random wind speed.

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Managing inventory and service levels in a safety stock‐based inventory routing system with stochastic retailer demands

Cited by 9 publications

References 2 publications

Integrated Smart Warehouse and Manufacturing Management with Demand Forecasting in Small-Scale Cyclical Industries

Integrated Smart Warehouse and Manufacturing Management with Demand Forecasting in Small-Scale Cyclical Industries

Untitled

An algorithm to solve a quantile optimization problem with loss function having a separable structure, and its application to an aerospace problem

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