THE EFFECT OF A CHANGING MARKET MIX IN SEED CORN ON INVENTORY COSTS

Changing product characteristics are causing U.S. seed corn companies to reevaluate their inventory strategies. A simulation model based upon the Economic Order Quantity model is built in @Risk to reflect a shortened product life cycle and product proliferation. Inventory costs levels increase because of increased uncertainty of demand. Empirical results find that shortening the product life cycle and expanding the product line increases total inventory costs by 120.8%, increases the average inventory level (primarily due to added safety stock) by 56.2%, and increases the cost of carryover, stockout cost, and safety stock cost by 143, 165, and 119 %, respectively. To maintain higher levels of customer service with products displaying shorter life cycles, more safety stock must be held to guard against stockouts.Crop Production/Industries,

Decomposed versus integrated control of a one-stage production system

This paper considers the case of a one-stage production system with several products and operating under tight production capacity constraints. The production schedule is cyclical, and there are long and sequence dependent setup times. The production system is regarded to consist of two components, namely a production unit and an inventory unit. The performance, with respect to inventory costs, timing and production quantity determination, of two types of control of the production system are compared, namely so-called decomposed and integrated control. For the generation of production orders, decomposed control uses only information from the inventory unit, while integrated control combines the information from both units. The main conclusion, based on simulation experiments, is that the inventory costs are just slightly lower in case of integrated control. Integration outperforms decomposition with respect to timing and quantity determination. However, since the differences between both approaches are small, the less sophisticated approach of decomposition is preferable when choices between both types of control have to be made.

The Equilibrium Dynamics for an Endogeneous Bid-Ask Spread in a Monopolistic financial Market

This paper presents an endogeneous model for the stochastic dynamics of the bid-ask spread of prices of nancial assets. The model is derived introducing an intermediary and inventory costs in the setting of equilibrium financial markets as described by Platen and Rebolledo (1996)Bid-ask spread; intermediary; dynamic equilibrium

Reducing Restaurant Inventory Costs Through Sales Forecasting

Family Restaurant is a local restaurant in the greater Atlanta area that serves a variety of dishes that include an assortment of 19 different proteins. Currently, Family Restaurant places protein orders based on business intuition, and tends to over-stock and sometimes under-stock. To minimize inventory costs by reducing over-stocking and preventing under-stocking of proteins, we applied Facebook Prophet (FB Prophet), ARIMA, and XG Boost machine learning models to predict protein demand and then fed these results into a Fixed Time Period inventory model to make an overall order suggestion based on the specified time period. We trained our models on sales data from 2021 and 2022 and tested our models on January 2023 data. Overall, FB Prophet shows a 6% savings per month from actual inventory spending, ARIMA shows a 34% savings, and XG Boost shows a 5% increase in spending for January 2023. ARIMA shows such high savings as it tends to under-stock in periods of high demand, while FB Prophet adequately meets periods of high demand and tends to over-stock during periods of normal demand. The restaurant prefers to over-stock, as under-stocking implies lost sales and thus, the loss of customer good faith, which is unacceptable for their business. Family Restaurant could adapt a hybrid approach of applying FB Prophet during known times of peak sales volume, while applying ARIMA during times of normal sales volume and realizing savings of 30%. The hybrid approach is slightly riskier, as it still relies on intuition. Ultimately, our recommendation is to follow the conservative approach of always applying the FB Prophet model and realizing savings at or around 6%

Perencanaan Kebijakan Persediaan Vaksin Booster Dengan Metode Continuous Review (s,S) Untuk Mengurangi Overstock Di Rumah Sakit Tentara Kota Pematangsiantar

Pematangsiantar City Army Hospital is one of the state-owned health facilities that provides booster vaccination services with 4 types of booster vaccines available, namely sinovac, astrazeneca, pfizer and moderna. The uncertain level of demand for booster vaccines causes the Pematangsiantar City Army Hospital to require booster vaccine inventory policy planning using the continuous review (s,S) method to prevent overstock which results in considerable cost expenditures. From the calculation of booster vaccine inventory control using the continuous review method (s,S), it is obtained that the total inventory cost has a significant percentage change. For the type of sinovac, the percentage change in total inventory costs reaches 92% of the total inventory costs in the existing conditions, for astrazeneca reaches 58% of the total inventory costs in the existing conditions, for pfizer reaches 60% of the total inventory costs in the existing conditions, and for moderna reaches 95% of the total inventory costs in the existing conditions. The results of the calculation of the total cost of inventory with continuous review (s,S) can provide a decrease in costs incurred by the Pematangsiantar City Army Hospital. This is because the continuous review (s,S) inventory policy minimises the cost of vaccine shortages which are quite costly

Monitoring, Operational Manager Efforts and Inventory Policy

Operations managers are becoming more important in modern corporations. They do not only care on firms’ inventory management but also they are involved in firms’ strategic decisions. Within this setting we ask about the consequences in the inventory policy of this new role undertaken by these managers. To do so, we develop a model where a firm’s Operations Manager can devote some efforts to develop non-inventory related activities. These efforts, although non-verifiable, may be known with a certain probability if the owner monitors them. Interestingly, by monitoring these efforts, a firm’s owner may end up stimulating Operations Manager to achieve steep inventory cost reductions in the short-term. Basic idea is that Operations Manager, in general, avoids reducing inventory costs significantly in one period because this makes additional cost cuts difficult which, in turn, reduce expected future inventory-related retribution. However, by compensating those non-inventory-related efforts may offset these losses. Thus, although Operations Managers in modern corporations carry out non-inventory related responsibilities, this may bring about some benefits on inventory costs reduction.

Optimasi Biaya Pengendalian Persediaan Alat Suntik (Spuit) Dengan Metode Optimisasi Robust Menggunakan Aplikasi Python Di RSUD Dr. Pirngadi

Inventory control is very important for companies because without proper inventory control the company will experience problems in meeting consumer needs both in the form of goods and services produced by the company. RSUD Dr. Pirngadi is one of the companies that uses conventional methods to calculate the total cost of inventory so that the costs incurred both for ordering syringes and storage costs are still high, therefore it is necessary to control the inventory of syringes which aims to minimise inventory costs so that company goals can be achieved. In solving the problem of controlling inventory costs to minimise total inventory costs, namely using robust optimisation. Robust optimisation is an optimisation model that contains uncertainty data to obtain the right solution using linear program solving. The results of research at the RSUD Dr. Pirngadi obtained the total cost of inventory according to company policy for the use of 3 mL Terumo syringes is Rp.426,104,665 while the robust optimisation method is Rp.319,647,106 so it can be concluded that by applying the robust optimisation method to the company can save inventory costs of Rp.106,987,599 or 25%.  Furthermore, the total inventory cost of using a 5 mL Terumo syringe according to company policy is Rp.208,402,454 while the robust optimisation method is Rp.166,608,139 so it can be concluded that by applying the robust optimisation method to the company can save inventory costs of Rp.41,794,315 or 20%

Inventory Costs Analysis

Gotovo da niti jedna tvrtka ne može ostvariti uspješno poslovanje i ostvarivanje dobiti bez držanja određenih količina zaliha. Ovisno o tome što je predmet poslovanja, tvrtka se odlučuje za određenu vrstu zaliha. Budući da svaka pojedina tvrtka ima zasebno područje djelovanja, ne može se odrediti neki univerzalan slučaj. To ponajviše ovisi o stanju na tržištu te pouzdanosti dobavljača s kojima tvrtka surađuje. Bez obzira na koju se vrstu zaliha tvrtka odluči, svaka od navedenih povlači za sobom određene troškove. Postoje razne vrste troškova zaliha na koje je potrebno obratiti pozornost za uspješno poslovanje poduzeća. To su troškovi u vidu troškova naručivanja, držanja, nedostatka zaliha i troškova proizvodnje. Svaki od navedenih troškova moguće je i potrebno izračunati da se utvrdi iznos kojim trošak zaliha sudjeluje u ukupnim troškovima poduzeća. Pri tome treba obratiti pozornost da troškovi zaliha ne prelaze njihovu vrijednost, jer u tome slučaju tvrtka ne ostvaruje dobit, čak naprotiv tvrtka može pretrpjeti velike gubitke. U svakom slučaju troškovi zaliha su nezaobilazni, ali ih uspješnom politikom treba svesti na minimum.There is almost any company that can achieve successful business and make profits without holding certain amounts of stock. Depending on the subject of business, the company is opting for a particular type of stock. Since each individual company has its own area of activity, it can not be determined by a universal case. It mostly depends on the market condition and reliability of suppliers with which company works. No matter what types of stock company decides to hold, each of these involves a certain costs. There are various types of inventory costs on which is nedeed to pay attention to a successful business enterprise. These costs are ordering costs, holding costs, stock – out costs and manufacturing costs. Each of these costs are possible and should be calculated to determine the amount of inventory costs in total costs of enterprises. It should pay attention to the costs of inventories do not exceed their value, because in this case the company does not makes profit, even on the contrary the company may suffer huge losses. In any case, the costs of inventories are unavoidable, but successful policy should keep them to a minimum

Inventory Costs Analysis

Gotovo da niti jedna tvrtka ne može ostvariti uspješno poslovanje i ostvarivanje dobiti bez držanja određenih količina zaliha. Ovisno o tome što je predmet poslovanja, tvrtka se odlučuje za određenu vrstu zaliha. Budući da svaka pojedina tvrtka ima zasebno područje djelovanja, ne može se odrediti neki univerzalan slučaj. To ponajviše ovisi o stanju na tržištu te pouzdanosti dobavljača s kojima tvrtka surađuje. Bez obzira na koju se vrstu zaliha tvrtka odluči, svaka od navedenih povlači za sobom određene troškove. Postoje razne vrste troškova zaliha na koje je potrebno obratiti pozornost za uspješno poslovanje poduzeća. To su troškovi u vidu troškova naručivanja, držanja, nedostatka zaliha i troškova proizvodnje. Svaki od navedenih troškova moguće je i potrebno izračunati da se utvrdi iznos kojim trošak zaliha sudjeluje u ukupnim troškovima poduzeća. Pri tome treba obratiti pozornost da troškovi zaliha ne prelaze njihovu vrijednost, jer u tome slučaju tvrtka ne ostvaruje dobit, čak naprotiv tvrtka može pretrpjeti velike gubitke. U svakom slučaju troškovi zaliha su nezaobilazni, ali ih uspješnom politikom treba svesti na minimum.There is almost any company that can achieve successful business and make profits without holding certain amounts of stock. Depending on the subject of business, the company is opting for a particular type of stock. Since each individual company has its own area of activity, it can not be determined by a universal case. It mostly depends on the market condition and reliability of suppliers with which company works. No matter what types of stock company decides to hold, each of these involves a certain costs. There are various types of inventory costs on which is nedeed to pay attention to a successful business enterprise. These costs are ordering costs, holding costs, stock – out costs and manufacturing costs. Each of these costs are possible and should be calculated to determine the amount of inventory costs in total costs of enterprises. It should pay attention to the costs of inventories do not exceed their value, because in this case the company does not makes profit, even on the contrary the company may suffer huge losses. In any case, the costs of inventories are unavoidable, but successful policy should keep them to a minimum

Perbandingan Metode Economic Order Quantity (EOQ) Dan Just In Time (JIT) Terhadap Pengendalian Persediaan Bahan Baku

The management and control of raw material inventories is an activity commonly found in industrial and manufacturing companies. There are two methods of controlling inventory, namely Economic Order Quantity (EOQ) and Just In Time (JIT). In determining inventory, companies tend to calculate it in the form of forecasting. Inventories that are too large will add to the cost of ordering (ordering cost) and storage costs (carring cost). Conversely, a small amount of inventory will reduce company profits due to lost opportunity for profit (opportunity cost) and incur back order costs (back order cost). Therefore it is important for companies to carry out inventory control which will affect the efficiency of inventory costs. This type of research is a comparative study comparing the Economic Order Quantity (EOQ) method with the Just In Time (JIT) method to the efficiency of inventory costs in Pateh SMEs. The results of the comparison. From the results of the analysis and calculations that have been carried out it is known that the Just In Time (JIT) control method is more appropriate to be applied to the "PATEH" home industry because the total inventory costs are smaller than the total inventory costs of the Economic Order Quantity (EOQ) method