The impact of different demand allocation rules on total stock levels

Wanke, Peter

doi:10.1590/s0101-74382010000100003

Cited by 6 publications

(6 citation statements)

References 9 publications

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“…The finding indicating the insignificant effect of stock holding on the supply chain management shows that it is not in line with previous studies such as Sheffi (2002) and Wanke (2011). This opposite finding could be explained by the fact that this study was conducted in a high technology industry where the cost of stock holding is very expensive.…”

Section: Discussioncontrasting

confidence: 64%

Order Fulfillment in Supply Chain Management: Does the Dimension of Inventory Management Matter in the Aerospace Industry in Malaysia?

Minai

Khor

Zain

et al. 2016

JBMA

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Inventory management is important in meeting customersâ€™ requirements. Similarly, theeffectiveness of supply chain management in the order fulfillment process is criticalfor the organization to stay in business. Inventory determines the service level of anyorganization as the adequate and timely flow of inventory across the supply chainand manufacturing processes is imperative for the success of the organization. Thisensures high rating on order fulfillment and ensures profitability. In the supply chain,inventory management is a critical part of the process as inventory is an asset andany shortage of inventory impact performance negatively. To keep the right level ofinventory is a challenge for all companies and the challenge is becoming more complexwith the drastic and frequent changes in demand. This also makes the forecastingprocess more tedious and difficult. The constant changes in customer preferenceswith the increases in demand have affected order fulfillment as most manufacturingfacilities do not have the additional capacity to cope with sudden increase in orders.They require huge investment and with the shortening of product life cycle, the periodto apportion return on investment has to be relatively short compared to the pastexperience. This affects working capital and increasing working capital is not aneasy task unless the organization is wealthy. As Malaysia embarks on the aerospaceindustry, the dilemma for the manufacturers are similar. The high cost of raw materialsin inventory and inventory holding significantly affects order fulfillment. The findingsof this study differs from the normal business inventory management practices, thusoffering new knowledge and learning curve in the inventory management context ofthe high technology industry, in particular, the aerospace. The findings indicate thatinventory management or the inventory conversion period has an inverse relationshipwith organizationâ€™s profitability.

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Section: Discussioncontrasting

confidence: 64%

Order Fulfillment in Supply Chain Management: Does the Dimension of Inventory Management Matter in the Aerospace Industry in Malaysia?

Minai

Khor

Zain

et al. 2016

JBMA

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“…In the case where is equal to 0 or 1 at the optimum, each decentralized location will be served exclusively by a single centralized location (independent distribution system). This means that there is no point in applying a centralized system where only one location takes over the responsibility of serving all decentralized locations [22].…”

Section: Ballou and Burnetas' Allocation Rule (Regular Transshipmentsmentioning

confidence: 99%

“…Several authors such as Tyagi and Das [3], Ballou and Burnetas [4], Corbett and Rajaram [19], Wanke and Saliby [20], Wanke [18], and Wanke [21][22] consider the particular case where = = 2. In this paper, the presented results also concern the same case (two decentralized locations and two centralized locations).…”

Section: Linking Allocation Rules To Inventory Pooling Modelsmentioning

confidence: 99%

Sensitivity Analysis of the Optimal Inventory-Pooling Strategies According to Multivariate Demand Dependence

2021

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Inventory-pooling (IP) is an effective tool to mitigate demand uncertainty and variability, to reduce operational costs, and consequently to increase the profit. The major assumptions of the previous works in literature on IP include the following: (1) Independents demand, which satisfy the typical normal independent and identically distributed (iid) random variables; (2) dependents (correlated) symmetric demands, which follows to a multivariate normal distribution. The effect of the dependent asymmetric demand is not yet studied. The aim of this paper is to consider this more realistic case. Indeed, the contribution of this paper is twofold. Firstly, it analyzes both the sensitivity of dependence structure and the levels of skewness of distributions on IP policies in terms of optimal total cost and demand satisfaction constraint. Secondly, both symmetric and asymmetric demand distributions are modeled using various beta distribution and the dependance between demands are modeled using various copulas. A newsvendor problem inspired by the literature, with two decentralized locations and two centralized locations, is considered the empirical study. For each dependance situation, three IP models are considered: inventory centralization, regular transshipments, and independent systems. The results suggest divergences in the decisions in about 9% of cases. Bad choice of marginal distributions given that the copula is appropriate can lead to divergences that vary between 2.2% and 4%, depending on whether the demand distributions are symmetric or asymmetric.

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“…A gestão eficaz de estoques é essencial para concretizar o potencial pleno de qualquer cadeia de valor. [6][15] [16] Ao longo dos anos, a visão das empresas e organizações em relação à forma de lidar com a gestão de estoques têm evoluído bastante. Os estoques eram inicialmente utilizados como elemento-chave no balanceamento da cadeia de suprimentos (grande quantidade de material parado ao longo da cadeia), ou seja, funcionavam como um pulmão para a proteção contra as ineficiências do processo.…”

Section: Sistemas De Controle De Estoqueunclassified

Cálculo Da Quantidade Ótima De Ressuprimento Para Minimização Do Custo De Manutenção Do Estoque De Itens Do Sistema De Abastecimento Da Marinha

Avelar¹,

Lima²,

Ribeiro³

et al. 2014

Anais Do XVII Simpósio De Pesquisa Operacional E Logística Da Marinha

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ResumoCom intuito de minimizar o custo de manutenção de estoque de itens do Sistema de Abastecimento da Marinha (SAbM), um simulador foi desenvolvido em MS Excel/VBA e aplicado para análise de modelos de determinação do estoque de segurança e otimização do custo de estocagem de materiais de uma mesma categoria e classe. Os resultados obtidos foram comparados com séries históricas obtidas do Sistema de Informações Gerenciais de Abastecimento da Marinha (SINGRA), e demonstram que o modelo pode ser aplicado para redução do custo de manutenção de estoque, por meio de uma visão sistêmica do abastecimento. Palavras-Chaves:Abastecimento; Otimização; Custo de manutenção de estoque. AbstractIn order to minimize the cost of holding inventory of items from the Brazilian Navy Supply System, a simulator was developed in MS Excel / VBA and applied to analyze models of determining the safety inventory and also, to optimize the cost of holding inventory of items from same category and class. The results were compared to historical data obtained from SINGRA Management System, and demonstrate that the model can be applied to reduce the cost of holding inventory, through a systemic vision of supply.

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The impact of different demand allocation rules on total stock levels

Cited by 6 publications

References 9 publications

Order Fulfillment in Supply Chain Management: Does the Dimension of Inventory Management Matter in the Aerospace Industry in Malaysia?

Order Fulfillment in Supply Chain Management: Does the Dimension of Inventory Management Matter in the Aerospace Industry in Malaysia?

Sensitivity Analysis of the Optimal Inventory-Pooling Strategies According to Multivariate Demand Dependence

Cálculo Da Quantidade Ótima De Ressuprimento Para Minimização Do Custo De Manutenção Do Estoque De Itens Do Sistema De Abastecimento Da Marinha

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