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

Stok kontrolü ve ekonomik sipariş miktarı modellerinde yeni açılımlar: ödemelerde gecikmeye izin verilmesi durumu ve bir model önerisi

Stok kontrol modelleri, talebin kesin olarak bilinip bilinememesine göre deterministik ve olasılıklı modeller olarak ikiye ayrılmaktadır. Deterministik stok kontrol modelleri arasında en yaygın kullanılan modeller Klasik Ekonomik Sipariş ve Üretim Miktarı Modelleridir. Bu modellerde ele alınan varsayımların çoğu, gerçek hayatta geçerli olabilen değişik durumları veya içinde bulunulan ekonomik koşulları dikkate almamaktadır. Dolayısıyla, sözü edilen varsayımların gevşetilmesi veya ek yeni varsayımlar yardımıyla, gerçek yaşamla daha tutarlı ve geçerli ekonomik koşulları dikkate alan yeni modeller üretilmiştir. Örneğin, stoksuzluk, öğrenme, enflasyon ve paranın zaman değeri etkileri, stoktaki ürünlerin zamanla bozulması, kusurlu ürün, ödemelerde gecikmeye izin verilmesi gibi yeni açılımlar, bu alanda geniş bir çalışma yelpazesi oluşmasını sağlamıştır. Bu çalışmada, klasik ekonomik sipariş miktarı modellerinde geçerli olan varsayımlardan bazıları gevşetilerek gelen siparişlerin belli bir oranda kusurlu ürün içerdiği, stoksuzluğa ve ödemelerde belli bir süre gecikmeye izin verildiği durum için yeni bir ekonomik sipariş miktarı modeli elde edilmektedir. Modelde, ödemelerde izin verilen gecikme süresinin iki farklı durumu için optimal değerler ile izin verilen gecikme süresi ve kusurlu ürün oranı arasındaki ilişkiler belirlenmektedir. Ayrıca, geliştirilen model için sayısal örnekler verilmekte ve izin verilen gecikme süresi ve kusurlu ürün oranındaki değişimlerin etkileri duyarlılık analizi ile incelenmektedir. Yapılan analizler sonucu ödemelerde izin verilen gecikme süresi arttıkça sipariş miktarının azaldığı toplam karın ise azaldığı görülmektedir. Anahtar Kelimeler: Ekonomik Sipariş Miktarı, Kusurlu Ürün, Ödemelerde Gecikmeye İzin Verilmesi, Stoksuzluk.\ud Inventory control models are classified as deterministic and stochastic models upon the condition that the demand is definitely known, or not. Economic Order and Production Quantity models are among the most widely used techniques in deterministic inventory control models. As a result of many unrealistic assumptions embedded in these models, some real life situations and current economic circumstances are not considered. Therefore, by loosening these assumptions and introducing some extra hypotheses, many new models consistent with real life and consider current economic conditions were developed. A vast literature has occurred under these conditions which are known as new approaches such as shortage, effect of learning, inflation and time value of money, deterioration, defective items and permissible delay in payment. In this study, a new model is proposed in the case of defective items, permissible delay in payments and shortage by loosening some of the assumptions of classical Economic Order Quantity models. For two case of permissible delay in payments, the relationships between permissible delay time, rate of defective item and optimal values are determined. Furthermore, numerical examples are given and analyzed for the developed model. Changes in the optimal values with respect to the rate of defective item and permissible delay in payments are analyzed with sensitivity analysis. Result of the analysis show that while permissible delay of payment increases order quantity decreases and total profit increases. However when rate of defective items increases order quantity increases and total profit decreases. Keywords: Economic Order Quantity, Defective Items, Permissible Delay in Payments, Shortag

Modelling and Determining Inventory Decisions for Improved Sustainability in Perishable Food Supply Chains

Since the introduction of sustainable development, industries have witnessed significant sustainability challenges. Literature shows that the food industry is concerned about its need for efficient and effective management practices in dealing with perishability and the requirements for conditioned storage and transport of food products that effect the environment. Hence, the environmental part of sustainability demonstrates its significance in this industrial sector. Despite this, there has been little research into environmentally sustainable inventory management of deteriorating items. This thesis presents mathematical modelling based research for production inventory systems in perishable food supply chains. In this study, multi-objective mixed-integer linear programming models are developed to determine economically and environmentally optimal production and inventory decisions for a two-echelon supply chain. The supply chain consists of single sourcing suppliers for raw materials and a producer who operates under a make-to-stock or make-to-order strategy. The demand facing the producer is non-stationary stochastic in nature and has requirements in terms of service level and the remaining shelf life of the marketed products. Using data from the literature, numerical examples are given in order to test and analyse these models. The computational experiments show that operational adjustments in cases where emission and cost parameters were not strongly correlated with supply chain collaboration (where suppliers and a producer operate under centralised control), emissions are effectively reduced without a significant increase in cost. The findings show that assigning a high disposal cost, limit or high weight of importance to perished goods leads to appropriate reduction of expected waste in the supply chain with no major cost increase. The research has made contributions to the literature on sustainable production and inventory management; providing formal models that can be used as an aid to understanding and as a tool for planning and improving sustainable production and inventory control in supply chains involving deteriorating items, in particular with perishable food supply chains.the Ministry of Science and Technology, the Royal Thai Government

Country of origin effect and the image of Third World manufactured goods exporters : an example from Zimbabwe

EThOS - Electronic Theses Online ServiceGBUnited Kingdo

Journal of the House of Representatives of the 76th GA Vol. 2, no. 2, 1996

The published daily journals of the transactions of the House of Representatives for the current legislative session and the official bound journals printed after adjournment for previous legislative sessions