To determine the safety stock required to achieve a desired service level, demands are commonly assumed to follow a normal probability distribution. However, since demands are necessarily truncated at values below zero, this paper will show that this approach underestimates the actual demand level and results in achieved service levels that are less than those targeted. Use of a left-truncated ...

The objective of this study is to determine how to do forward-looking analysis to determine the future need for various professionals, so that educational institutes can produce an appropriate labor force for national development. The concept of component part commonality, which derives from research on effective inventory management using material resource planning MRP , can also be applied to...

In spite of the remarkable improvements in the quality of general purpose mixed-integer programming software, the effective solution of a variety of lot-sizing problems depends crucially on the development of tight formulations for the special problem features occurring in practice. After reviewing some of the basic preprocessing techniques for handling safety stocks and multilevel problems, we...

We address a multi-item capacitated lot-sizing problem with setup times, stock and demand shortages. Demand cannot be backlogged, but can be totally or partially lost. Safety stock is an objective to reach rather than an industrial constraint to respect. In this paper we consider an approach based on a lagrangean relaxation of the capacity constraints to generate a lower bound of the optimal va...

Motivated by the operational environment in high-tech industries, this paper examines the coordination between and when time to market and capacity marketing operations utilization are both main factors. In contrast to earlier joint lot-sizing literature which focuses on price-quantity coordination, our model captures the inter-relationship between order quantity, capacity level, and lead-time....

Consumption and saving decisions are at the heart of both short-run and long-run macroeconomic analysis (as well as much of microeconomics). In the short run, spending dynamics are of central importance for business cycle analysis and the management of monetary policy. And in the long run, aggregate saving determines the size of the aggregate capital stock, with consequences for wages, interest...

This paper proposes a reliability-based economic model predictive control (MPC) strategy for the management of generalised flow-based networks, integrating some ideas on network service reliability, dynamic safety stock planning, and degradation of equipment health. The proposed strategy is based on a single-layer economic optimisation problem with dynamic constraints, which includes two enhanc...

Received: 10 September 2013 Abstract Accepted: 5 November 2013 Transport plays a key role in inventory management since it affects logistic costs as well as environmental performance of the supply chain. Expected value and variability of supply lead time depend on the transportation means adopted, and influence the optimal values of order quantity, reorder level, and safety stock to be adopted....

A Mixed-integer Linear Programming model is proposed to determine the optimal number, location and capacity of the warehouses required to support a long-term forecast for a business with seasonal demand. Discrete transportation costs, dynamic warehouse contracting, and the handling of safety stock are the three main distinctive features of the problem. Four alternatives for addressing discrete ...

A simulation-based optimization framework involving simultaneous perturbation stochastic approximation (SPSA) is presented as a means for optimally specifying parameters of internal model control (IMC) and model predictive control (MPC)-based decision policies for inventory management in supply chains under conditions involving supply and demand uncertainty. The effective use of the SPSA techni...