Inventory control exercises pdf

Exercises and solutions in PD

Evidence of improved inventory control

Inventory data applied to a standard partial stock-adjustment model demonstrate that inventory control, defined by desired marginal inventory-sales ratios and speeds of adjustment, improved in the last decade or so, particularly in the manufacturing sector. In addition, the evidence suggests that, contrary to popular wisdom, the net effect of these changes in inventory control has been to increase the volatility of inventory investment in both the manufacturing and trade sectors.Inventories

Two notes on the joint replenishment problem under constant demand

Inventory Control;Inventory Models;management science

ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU KUE DENGAN METODE SAFETY STOCK (SS) DAN REORDER POINT (ROP) PADA IDAKU PASURUAN

Optimal raw material inventory control is the main factor in ensuring the achievement of the desired targets in accordance with the company's strategy and program that has been determined so that there is no excess stock (over stock) and stock out (stock out). This research aims to find out how the inventory of cake raw materials is controlled at IDAKU Pasuruan. This type of research uses descriptive research using qualitative methods using secondary data obtained from company data. The analytical method used for IDAKU Pasuruan is Safety Stock (SS) and Reorder Point (ROP). The results of this research can be concluded that: 1. IDAKU Pasuruan inventory control has been carried out well using PKM (Maximum Requirement Fulfillment), 2. Companies should apply safety stock and reoder point calculations in inventory management and control as a consideration to avoid stock shortages (stock out) or excess stock (over stock)

A coordination mechanism with fair cost allocation for divergent multi-echelon inventory systems

This paper is concerned with the coordination of inventory control in divergent multiechelon inventory systems under periodic review and decentralized control. All the installations track echelon inventories. Under decentralized control the installations will decide upon replenishment policies that minimize their individual inventory costs. In general these policies do not coincide with the optimal policies of the system under centralized control. Hence, the total cost under decentralized control is larger than under centralized control.\ud To remove this cost inefficiency, a simple coordination mechanism is presented that is initiated by the most downstream installations. The upstream installation increases its base stock level while the downstream installation compensates the upstream one for increased costs and provides it with additional side payments. We show that this mechanism coordinates the system; the global optimal policy of the system is the unique Nash equilibrium of the corresponding strategic game. Furthermore, the mechanism results in a fair allocation of the costs; all installations enjoy cost savings

Coordinated replenishment systems with discount opportunities

Inventory Control;Inventory Models;inkoop

On Service Level Measures in Stochastic Inventory Control

We consider the issue of modeling service level measures in stochastic decision making via chance constraints. More specifically we focus on service level measures in production/inventory control under stochastic demand and alpha service level constraints, which are constraints enforcing a prescribed non-stockout probability for the system. We introduce multiple ways of expressing these chance constraints by using conditional probability. Then we demonstrate that, when these constraints are formulated by using expressions that do not involve a conditional probability, a base stock policy is optimal for this problem only under a number of assumptions. To demonstrate this, we discuss a number of examples for simple cases in which it is possible to find better policies and we also present some analytical results. In contrast, when our novel measure involving a conditional probability is used. A base stock policy is optimal under much less restrictive assumptions, although the cost performance of the system tends to deteriorate

Logistics, Inventory Control, and Supply Chain Management

Industrial Organization,