Inventory is lifeblood in an organization. Multiechelon inventory of Olympia paper mill, Khyber Pakhtonkhwa is optimized by efficient management of the organizational supply chain (SC). A supply chain is designed starting from raw material receiving from supplier up to finished good delivered to the customer. The on-going setup of the selected organization is traditional based on the experience...

We consider a two echelon supply chain: a single retailer holds a finished goods inventory to meet an i.i.d. customer demand, and a single manufacturer produces the retailer’s replenishment orders on a make-to-order basis. In this setting the retailer’s order decision has a direct impact on the manufacturer’s production. It is a well known phenomenon that inventory control policies at the retai...

In this article, we propose a new way to improve master production schedule (MPS) stability under conditions of finite capacity. The purpose is to optimize product availability and customer service for typical situations encountered in the consumer goods industry. Using a comprehensive MPS model, we conduct a simulation study with experimental design to identify factors having a significant inf...

In designing a supply chain, firms are often faced with the competing demands of improved customer service and reduced cost. We develop a model that incorporates fixed distribution center location costs, working and safety stock inventory costs at the distribution centers, fixed and variable transport costs from a plant to the distribution centers and delivery costs to customers. Service is mea...

T life cycle of new products is becoming shorter and shorter in all markets. For electronic products, life cycles are measured in units of months, with 6to 12-month life cycles being common. Given these short product life cycles, product demand is increasingly difficult to forecast. Furthermore, demand is never really stationary because the demand rate evolves over the life of the product. In t...

The design and management of a multi-stage production/distribution system is one of the most critical problem in logistics and in facility management. This manuscript deals with the so called facility locationallocation problem, i.e. with the simultaneous decisions regarding the design, management, and control of a distribution network. In particular the logistic problem object of this study de...

There exist many inventory control studies that consider either continuous review & continuous ordering, or periodic review & periodic ordering. Mixtures of the two are hardly ever studied. However, the model with periodic review and continuous ordering is highly relevant in practice, as information on the actual inventory level is not always up to date while making ordering decisions. This pap...

This paper performs an empirical investigation into the relationship between oil price and stock markets returns for seven countries (Kuwait, Oman, UAE, Bahrain, Qatar, UK and USA) by applying the Vector Auto Regression (VAR) analysis. During this period oil prices have tripled creating a substantial cash surplus for the Gulf Cooperation Council (GCC) Countries while simultaneously creating inc...

In Graves Willems (2000) we consider the problem of finding the optimal placement of safety stocks in a supply chain with bounded demand and guaranteed service times. We develop a dynamic programming algorithm for supply chains that can be modeled as spanning trees. The intent of this note is to correct an error in the algorithm. Ekaterina Lesnaia of MIT and Dr. Salal Humair of Optiant independ...

We optimize ordering and inbound shipment decisions for a manufacturer that sources multiple items from a single supplier. The objective is to satisfy the requirements in the production plan with minimum transportation and inventory holding costs over a multi-period planning horizon. Transportation costs are charged to the manufacturer on a per truck shipment basis. We investigate the option of...