Three-Leveled Model For Integrate Inventory Management in Supply Chains
MAGAZINE №2 (97) April 2020
AUTHORS ASLAKHANOV A.R., GERAMI V.D.
CATEGORY Inventory management Optimization and mathematical modelling Supply chain management
ABSTRACT
In the theory of inventory management, various models of inventory management are widely known. All of them are based on two fundamental factors: order size and the time between two adjacent deliveries. The variety of additional conditions (discounts depending on the size of the delivery lot, penalties due to deficits, the volume of safety stock, etc.) make the task of developing a working model to minimize total costs extremely difficult. It is another factor that looks interesting - the multi-level structure of reserves allocation.
In (Aslakhanov A.R., 2017; Lukinskiy V.V., Aslakhanov A.R., 2017), an integrated inventory management model was developed that would take into account deficit costs, randomness of demand and logistics cycles duration, as well as a predetermined planned level of end-user service. The model was developed for cases of two-level supply chains, which is a serious limitation for applying the model in practice.
In this paper, the model will be expanded for the case of a three-level linear supply chains in order to assess the scalability potential of the developed model for business situations and to assess the possibility of using the developed model in conjunction with reinforcement learning methods.
Keywords: inventory management Economic order quantity safety stock supply chain management total logistics costs
Method of Calculating Inventory Management Parameters for a Model with a Fixed Interval Between Orders Considering Deficit Costs
MAGAZINE №5(88) October 2018
AUTHORS BELOV L.B.
CATEGORY Inventory management Optimization and mathematical modelling
ABSTRACT
This paper is devoted to the development of formal procedures for calculating inventory management parameters for a model with a fixed interval between orders. The urgency of transition from informal methods of regulation of insurance stocks to formal economically justified procedures for calculating their planned values is shown. The article presents an analysis of the concept of "logistics service" in the context of its use in determining safety stock value. The main approaches to determine the target safety stock value depending on the level of logistics service are considered. Difficulties in determining the dependence of logistics service level and financial performance are widely known. In this regard, it is proposed to use the equation of total costs of replenishment and maintenance of reserves, including deficit costs, as a basis for determining the parameters of inventory management based on cost minimization. In this case, the service level is treated as a derived value that corresponds to the minimum total cost condition. A method for determining the parameters of inventory management for a model with a fixed period is developed. The algorithm of calculations is tested on an example.
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Specifics of Spare Parts Replenishment Parameters Definition for Processing Plant
MAGAZINE №3 (80) June 2017
AUTHOR KRASNOSHCHEKOV A.G.
CATEGORY Industrial companies’ corporate logistics Inventory management Optimization and mathematical modelling
ABSTRACT
Modern methods of inventory management had been formed, implemented and fine-tuned within industries that work directly to consumer, such as retail and FMCG. Those industries are innovation leaders in the sphere of supply chain management. Industrial large-equipment companies, especially in natural resources and processing industries as usual are catching-up and adopting practices of leading industries. A key element of inventory management process is method of definition of replenishment parameters such as safety stock, reorder point, lot size. Applying those proved methods, which are well known within retail companies, requires special customization driven by specifics of industrial facilities. The article describes a method that has been developed for spare parts replenishment of equipment maintenance of a processing plant. Implementation of the method allowed to reduce stock level by 22%
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