Sustainable Inventory Management Model for High-Volume Material with Limited Storage Space under Stochastic Demand and Supply

Inventory management and control has become an important management function, which is vital in ensuring the efficiency and profitability of a company’s operations. Hence, several research studies attempted to develop models to be used to minimise the quantities of excess inventory, in order to reduce their associated costs without compromising both operational efficiency and customers’ needs. The Economic Order Quantity (EOQ) model is one of the most used of these models; however, this model has a number of limiting assumptions, which led to the development of a number of extensions for this model to increase its applicability to the modern-day business environment. Therefore, in this research study, a sustainable inventory management model is developed based on the EOQ concept to optimise the ordering and storage of large-volume inventory, which deteriorates over time, with limited storage space, such as steel, under stochastic demand, supply and backorders. Two control systems were developed and tested in this research study in order to select the most robust system: an open-loop system, based on direct control through which five different time series for each stochastic variable were generated, before an attempt to optimise the average profit was conducted; and a closed-loop system, which uses a neural network, depicting the different business and economic conditions associated with the steel manufacturing industry, to generate the optimal control parameters for each week across the entire planning horizon. A sensitivity analysis proved that the closed-loop neural network control system was more accurate in depicting real-life business conditions, and more robust in optimising the inventory management process for a large-volume, deteriorating item. Moreover, due to its advantages over other techniques, a meta-heuristic Particle Swarm Optimisation (PSO) algorithm was used to solve this model. This model is implemented throughout the research in the case of a steel manufacturing factory under different operational and extreme economic scenarios. As a result of the case study, the developed model proved its robustness and accuracy in managing the inventory of such a unique industry

Capacity flexibility of a maintenance service provider in specialized and commoditized system environments

In the last decades, after-sales services have become increasingly important since service is a source of differentiation as well as a lucrative business opportunity due to the substantial amount of revenue that can be generated from the products in use throughout their life cycle. Following this trend, many after-sales service providers have emerged in the market or evolved as semi-autonomous units within the OEM (Original Equipment Manufacturer) companies. In this thesis, we focus on the maintenance aspect of after-sales services. We assume that a maintenance service provider (MSP) is running a repair shop in an environment with numerous operating systems that are prone to failure. The MSP is responsible for keeping all systems in an environment up and working. We mainly focus on two types of environments: 1) Specialized System Environment 2) Commoditized System Environment. The systems in the first environment are highly customized. They are designed and built specifically following the owners’ precise requirements. Defense systems, specific lithography systems, mission aircrafts or other advanced/complex, engineer-to-order capital goods are examples of such specialized systems. Due to the diversity of owners’ requirements, each system develops many unique characteristics, which make it hard, if not impossible, to find a substitute for the system, in the market as a whole. In the second environment, the systems are more generic in terms of their functionality. Trucks, cranes, printers, copy machines, forklifts, computer systems, cooling towers, some common medical devices (i.e. anesthesia, x-ray and ultrasound machines, etc…), power systems are examples of such more commoditized systems. Due to the more generic features of the owners’ requirements, it is easier to find a substitute for a system in the market, with more or less the same functionality, for short-term hiring purposes. Upon a system breakdown, the defective unit (system/subsystem) is sent to the repair shop. MSP is responsible for the repair and also liable for the costs related to the down time. In order to alleviate the down-time costs, there are chiefly two different downtime service strategies that the MSP can follow, depending on the environment the repair shop is operating in. In the specialized system environment, the MSP holds a spare unit inventory for the critical subsystem that causes most of the failures. The downtime service related decision in such a case would be the inventory level of the critical spare subsystems. On the other hand, in the commoditized system environment, rather than keeping a spare unit inventory, the MSP hires a substitute system from an agreed rental store/3rd party supplier. The downtime service related decision in this case is the hiring duration. Next to the above downtime service related decisions, repair shop’s capacity level is the other primary determinant of the systems’ uptime/availability. Since maintenance is a labor-intensive industry, the capacity costs constitute a large portion of the total costs. Increasing pressure on profitability and the growing role of External Labor Supplier Agencies motivate service provider firms to scrutinize the prospects and possibilities of capacity flexibility by using contingent workforce. For various reasons, flexible capacity practices in real life are often periodic, and the period length is both a decision parameter and a metric for flexibility. A shorter period length implies more frequent adapting possibilities and a better tailoring of the capacity. On the other hand, the flexible capacity cost per unit time is higher for shorter period lengths due to the compensating wage differentials, which models the relation between the wage rate and the unpleasantness, risk or other undesirable attributes of the job. Certainly, short period length in this context is an undesirable attribute for the flexible capacity resource, as it mandates the resource to switch tasks and to be ready/available more frequently, without the guarantee that s/he will be actually employed. Therefore, we propose several empirically testable functional forms for the cost rate of a flexible capacity unit, which are decreasing with the period length and, in the limit, approaches to the cost rate of a permanent capacity unit from above. In the light of discussions above, we investigate three different capacity modes in this dissertation: ¿ Fixed Capacity Mode: In this mode, all of the capacity is permanent and ready for use in the repair shop. This mode serves as a reference point in order to assess the benefits of other flexible capacity modes. The relevant capacity decision in this mode is the single capacity level of the repair shop. ¿ Periodic Two-Level Capacity Mode: In this mode, we assume two levels of repair shop capacity: permanent and permanent plus contingent capacity levels. The permanent capacity is always available in the system, whereas the deployment of the contingent capacity is decided at the start of each period based on the number of units waiting to be repaired in the shop. The relevant capacity decisions in this mode are the permanent and contingent capacity levels, the period length and the states (in terms of number of defective units waiting) where the contingent capacity is deployed. ¿ Periodic Capacity Sell-Back Mode: In this mode, the failed units are sent to the repair shop at regular intervals in time. Due to this admission structure, when the repair of all the defective units in the repair shop are completed in a period, it is known that no new defective parts will arrive to the shop at least until the start of the next period. This certainty in idle times allows for a contract, where the repair shop capacity is sold at a reduced price to the capacity agency where it is assigned to other tasks until the start of the next period. The original cost of the multi-skilled repair shop capacity per time unit is higher than the permanent capacity cost that is mentioned in previous modes due to the compensation factors such as additional skills, frequent task switching and transportation/transaction costs. Similar to the previous capacity mode, the compensation decreases with the length of the period length. The relevant capacity decisions in this mode are the capacity level and the period length. The primary goal of this thesis is to develop quantitative models and methods for taking optimal capacity decisions for the repair shop in the presence of the capacity modes described above and to integrate these decisions with the other downtime service decisions of the MSP for two different types of system environments (specialized vs. commoditized). After the introduction of the problem, concepts and literature review are given in Chapters 1. In Chapter 2, we focus on the use of capacity flexibility in the repair operations of the MSP in specialized system environment. The capacity related decisions are integrated with the decision on the stock level of the spare unit inventory for all three capacity modes. In Chapter 3 we investigate the same three capacity modes in a (partially) commoditized system environment, where hiring a substitute system for a pre-determined, uniform duration becomes the conventional method upon a failure. In this chapter the decision on the hiring duration is integrated with the other capacity related decisions. Then we provide some preliminary analysis and give the early results on the hybrid strategy where both "keeping stock" and "hire substitute" strategies are followed. Finally in Chapter 4, we summarize our results, give the conclusion and discuss the topics covered in this thesis with a brief exploration on the future research. The numerical results reveal that, in both specialized and commoditized system environments, substantial cost savings (up to 70%) can be achieved under periodic two-level capacity and periodic capacity sell-back modes compared to the fixed capacity mode. However, both period length and the compensation scheme of the capacity resources greatly influence the savings, even in some cost instances, flexible modes (periodic two-level and capacity sell-back) become less economical compared to the fixed capacity mode. Cost parameter instances in which each of the 3 capacity modes becomes cost-optimal, the characteristics of the cost savings and the sensitivity analysis of cost/policy parameters are investigated in both of the system environments in Chapter 2 and Chapter 3, respectively. In the commoditized system environment, under the same cost parameter settings, the hiring substitute from an external supplier for a fixed duration causes a better, more refined and certain control compared to keeping an inventory. Hybrid strategy, in which a substitute is hired after a stock-out instance, is applicable in commoditized as well as commoditizing (previously specialized systems that are in the ongoing commoditization process) system environments. Hybrid strategy outperforms both "only keeping stock" and "only hiring substitute" alternatives; however, in the commoditized system environment, a MSP may still have a proclivity to employ the "hiring substitute" strategy only, because it does not require any initial investment, which is convenient for SMEs. These issues will be explicated further in Chapter 5. We believe that the framework, the design and analysis of the problems addressed as well as the results and the insights obtained in this dissertation can help and motivate other researchers/practitioners to further investigate the cost saving prospects from capacity flexibility in maintenance service operations. We also anticipate that the commoditization framework described in this thesis will be increasingly useful in the future, since the commoditization of the parts/machines will be much more widespread, pushing all the after-sales service providers to compete on the efficiency of their operatio

Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain

The evolution of industrial development since the 18th century is now experiencing the fourth industrial revolution. The effect of the development has propagated into almost every sector of the industry. From inventory to the circular economy, the effectiveness of technology has been fruitful for industry. The recent trends in research, with new ideas and methodologies, are included in this book. Several new ideas and business strategies are developed in the area of the supply chain management, logistics, optimization, and forecasting for the improvement of the economy of the society and the environment. The proposed technologies and ideas are either novel or help modify several other new ideas. Different real life problems with different dimensions are discussed in the book so that readers may connect with the recent issues in society and industry. The collection of the articles provides a glimpse into the new research trends in technology, business, and the environment

Supply Chain

Traditionally supply chain management has meant factories, assembly lines, warehouses, transportation vehicles, and time sheets. Modern supply chain management is a highly complex, multidimensional problem set with virtually endless number of variables for optimization. An Internet enabled supply chain may have just-in-time delivery, precise inventory visibility, and up-to-the-minute distribution-tracking capabilities. Technology advances have enabled supply chains to become strategic weapons that can help avoid disasters, lower costs, and make money. From internal enterprise processes to external business transactions with suppliers, transporters, channels and end-users marks the wide range of challenges researchers have to handle. The aim of this book is at revealing and illustrating this diversity in terms of scientific and theoretical fundamentals, prevailing concepts as well as current practical applications

Morocco: Laverde's gateway to Africa

Throughout its activity, Laverde has continuously worked to be seen in the national and international market as a prestigious company, focusing mainly on the quality of its products. In order to maintain its reputation, the company invests regularly in research and development and has also invested in new infrastructures. The new factory will guarantee superior levels of quality, the development of new product lines and the increase of Laverde's production capacity. For this reason, it will be necessary to dispose of merchandise and the company considers that it would be fundamental to adopt an internationalization strategy for a new continent, even though Laverde currently has a mainly export-oriented market. Morocco is a gateway to Africa and seems a good investment option, since it is a constantly growing country, in which the cosmetics sector is significantly appreciated. In addition, most of the raw materials used in Laverde products are from Morocco. However, nowadays nearly all of them are acquired through intermediate countries and the decision to enter in the Moroccan market can facilitate these trade links. A business plan will be elaborated, in order to analyse the investment decision and to formulate a strategy to enable the company to achieve sustainable growth and to consolidate its market position from a global perspective. For this reason, the strengths and competitive advantages will be identified and the opportunities and risks associated with the internationalization decision will be taken into account.Durante toda a sua atividade, a Laverde trabalhou continuamente para ser vista no mercado nacional e internacional como uma empresa conceituada, apostando principalmente na qualidade dos seus produtos. Com o intuito de manter a sua reputação, a empresa investe regularmente em investigação e desenvolvimento e, além disso investiu em novas infraestruturas. A nova fábrica vai permitir que a empresa garanta níveis de qualidade superiores, que desenvolva novas linhas de produtos e que aumente a sua capacidade produtiva. Por este motivo, surge a necessidade de escoar mercadoria e, apesar de atualmente a Laverde ter um mercado principalmente direcionado para a exportação, considera que seria fundamental adotar uma estratégia de internacionalização para um novo continente. Marrocos surge como uma porta de entrada em África e apresenta-se como uma boa opção de investimento, visto que se trata de um país em constante crescimento, no qual o sector da cosmética é significativamente valorizado. Além disso, grande parte das matérias-primas utilizadas nos produtos da Laverde têm origem em Marrocos. No entanto, atualmente são praticamente todas adquiridas através de países intermediários e a decisão de entrar no mercado Marroquino, pode facilitar estas ligações comerciais. Para analisar a decisão de investimento, será elaborado um plano de negócios de modo a formular uma estratégia que permita à empresa um crescimento sustentável e a consolidação da sua posição no mercado numa perspetiva global. Deste modo, serão analisados os pontos fortes e vantagens competitivas e identificadas as oportunidades e os riscos associados à internacionalização

Town of Hanover, New Hampshire annual report for the fiscal year ending June 30, 2021 and 2022 town meeting.

This is an annual report containing vital statistics for a town/city in the state of New Hampshire

Town of Hanover, New Hampshire annual report for the fiscal year ending June 30, 2021 and 2022 town meeting.

This is an annual report containing vital statistics for a town/city in the state of New Hampshire