Stationary Properties of a Two-echelon Inventory Model for Low Demand Items
Author : R. M. Simon
Publisher :
Page : 37 pages
File Size : 20,29 MB
Release : 1969
Category : Inventories
ISBN :
Stationary Properties of a Two-echlon Inventory Model for Low Demand Items
Author : R. M. Simon
Publisher :
Page : 43 pages
File Size : 19,99 MB
Release : 1969
Category :
ISBN :
Book Description
The paper gives a description of a two-echelon inventory model with exact expressions for the stationary distributions of stock-on-hand and backorders at the various facilities. Items are completely recoverable, completely consumable (nonrecoverable), or recoverable with a positive condemnation rate. Repair is performed at base or depot levels, and repair and transportation times are assumed to be determiniatic. The model applies to items with reasonably low base demand rates since it is assumed that the bases use continuous review replenishment policies and the depot uses a general policy unless the item is completely recoverable. A solution algorithm enables the construction of a cost-effectiveness curve of inventory investment vs. expected base backorders under an optimal allocation. Because the model yields exact results, it can be used to check other techniques that are developed to treat positive condemnation rates or low demand consumable items.
Comments on Simon's Two-Echelon Inventory Model
Author : Alan J. Kaplan
Publisher :
Page : 17 pages
File Size : 25,57 MB
Release : 1971
Category :
ISBN :
Book Description
An article entitled Stationary Properties of a Two-Echelon Inventory Model for Low Demand Items by R.M. Simon appeared in Operations Research, 19,3. An argument which is not always valid was used to find the stationary distribution of inventory. The paper presents a corrected version of Simon's methodology. (Author).
Optimal Inventory Modeling of Systems
Author : Craig C. Sherbrooke
Publisher : Springer Science & Business Media
Page : 350 pages
File Size : 11,23 MB
Release : 2006-04-11
Category : Business & Economics
ISBN : 140207865X
Book Description
Most books on inventory theory use the item approach to determine stock levels, ignoring the impact of unit cost, echelon location, and hardware indenture. Optimal Inventory Modeling of Systems is the first book to take the system approach to inventory modeling. The result has been dramatic reductions in the resources to operate many systems - fleets of aircraft, ships, telecommunications networks, electric utilities, and the space station. Although only four chapters and appendices are totally new in this edition, extensive revisions have been made in all chapters, adding numerous worked-out examples. Many new applications have been added including commercial airlines, experience gained during Desert Storm, and adoption of the Windows interface as a standard for personal computer models.
An Exact N Echelon Inventory Model: The Simple Simon Method
Author :
Publisher :
Page : 17 pages
File Size : 10,28 MB
Release : 1979
Category :
ISBN :
Book Description
The roots of this work are from a paper by Richard Simon: (1) Stationary Properties of a Two-Echelon Inventory Model for Low Demand Items (AD- 689 765). A subsequent paper by Kruse and Kaplan; (2) claimed to correct Simon's results, but Kruse; (3) points out that Simon's results are, nevertheless, correct in spite of the apparent logical error in their derivation. He also notes that both Simon's and Kruse and Kaplan's results reduce to a simple and intuitive form. We take a new look at the model in this paper with the intent of providing a more revealing analysis than appears in either (1) or (2). We then show how these 2-echelon results can be extended to model an N-echelon inventory system in a manner similar to the way the METRIC model uses Palm's Theorem to accommodate an indefinite number of echelons.
Spare Parts Inventory Control under System Availability Constraints
Author : Geert-Jan van Houtum
Publisher : Springer
Page : 227 pages
File Size : 19,32 MB
Release : 2015-05-18
Category : Business & Economics
ISBN : 1489976094
Book Description
This book focuses on the tactical planning level for spare parts management. It describes a series of multi-item inventory models and presents exact and heuristic optimization methods, including greedy heuristics that work well for real, life-sized problems. The intended audience consists of graduate students, starting scholars in the field of spare parts inventory control, and spare parts planning specialists in the industry. In individual chapters the authors consider topics including: a basic single-location model; single-location models with multiple machine types and/or machine groups; the multi-location model with lateral transshipments; the classical METRIC model and its generalization to multi-indenture systems; and a single-location model with an explicit modeling of the repair capacity for failed parts and the priorities that one can set there. Various chapters of the book are used in a master course at Eindhoven University of Technology and in a PhD course of the Graduate Program Operations Management and Logistics (a Dutch network that organizes PhD courses in the field of OM&L). The required pre-knowledge consists of probability theory and basic knowledge of Markov processes and queuing theory. End-of-chapter problems appear for all chapters, with some answers appearing in an appendix.
An Analysis of a Two-echelon Inventory System for Recoverable Items
Author : Kripa Shanker
Publisher :
Page : 348 pages
File Size : 30,76 MB
Release : 1977
Category : Inventory control
ISBN :
Book Description
This dissertation presents an analysis of continuous review models of a two-echelon inventory system for recoverable items. The system consists of a depot and a set of bases. Primary demands occur at the bases for one or several units at a time. It is assumed that demands arrive in a Poisson manner. Upon arrival of a demand for certain units, a like number of failed units are turned in at the base. An inspection of the failed units is carried out to decide whether the units will be repaired at the base or at the depot or will be removed from the system in case repair is not economical. The bases use an (s-1, s) policy for procurement of serviceable units from the depot, and the depot uses an (s, S) policy to procure from the external supplier. Demands in an out-of-stock situation are backlogged. It is assumed that all the locations have infinite repair capacities and repair and procurement lead times are constant. A common problem in inventory management is to specify the policy parameters that will minimize expected cost per unit time for operating the system subject to constraints of certain performance measures. To formulate such a problem we must find the stationary distributions for inventory position, on-hand inventory, backorders and in-repair inventory. Our main objective is to find exact expressions for these distributions.
Principles of Inventory Management
Author : John A. Muckstadt
Publisher : Springer Science & Business Media
Page : 339 pages
File Size : 28,51 MB
Release : 2010-03-20
Category : Business & Economics
ISBN : 0387689486
Book Description
Inventories are prevalent everywhere in the commercial world, whether it be in retail stores, manufacturing facilities, government stockpile material, Federal Reserve banks, or even your own household. This textbook examines basic mathematical techniques used to sufficiently manage inventories by using various computational methods and mathematical models. The text is presented in a way such that each section can be read independently, and so the order in which the reader approaches the book can be inconsequential. It contains both deterministic and stochastic models along with algorithms that can be employed to find solutions to a variety of inventory control problems. With exercises at the end of each chapter and a clear, systematic exposition, this textbook will appeal to advanced undergraduate and first-year graduate students in operations research, industrial engineering, and quantitative MBA programs. It also serves as a reference for professionals in both industry and government worlds. The prerequisite courses include introductory optimization methods, probability theory (non-measure theoretic), and stochastic processes.
Multi-Stage Production Planning and Inventory Control
Author : Sven Axsäter
Publisher : Springer Science & Business Media
Page : 270 pages
File Size : 19,12 MB
Release : 2012-12-06
Category : Business & Economics
ISBN : 3642516939
Book Description
This paper treats a two-echelon inventory system. The higher echelon is a single location reffered to as the depot, which places orders for supply of a single com modity. The lower echelon consists of several points, called the retailers, which are supplied by shipments from the depot, and at which random demands for the item occur. Stocks are reviewed and decisions are made periodically. Orders and/or shipments may each require a fixed lead time before reaching their respective desti nations. Section II gives a short literature review of distribution research. Section III introduces the multi-echelon distribution system together with the underlying as sumptions and gives a description of how this problem can be viewed as a Markovian Decision Process. Section IV discusses the concept of cost modifications in a distribution context. Section V presents the test-examples together with their optimal solutions and also gives the characteristic properties of these optimal solutions. These properties then will be used in section VI to give adapted ver sions of various heuristics which were used in assembly experiments previously and which will be tested against the test-examples.
Logistics of Production and Inventory
Author : S.C. Graves
Publisher : Elsevier
Page : 780 pages
File Size : 42,38 MB
Release : 1993-05-27
Category : Business & Economics
ISBN : 9780444874726
Book Description
Handbook
