An integrated scheduling system with demand forecasting has been developed. The SARIMA (seasonal autoregressive integrated moving average) model is automated to forecast the demand. In order to reduce the cost and instability of production scheduling, a safety inventory determination is also automated additionally. A scheduling system based on the mathematical model and the efficient optimizati...

With information revolution, increased globalization and competition, supply chain has become longer and more complicated than ever before. These developments bring supply chain management to the forefront of the management’s attention. Inventories are very important in a supply chain. The total investment in inventories is enormous, and the management of inventory is crucial to avoid shortages...

We consider the numerical resolution of hierarchical inventory problems under global optimization. First we describe the model as well as the dynamical stochastic system and the impulse controls involved. Next we characterize the optimal cost function and we formulate the Hamilton-Jacobi-Bellman equations. We present a numerical scheme and a fast algorithm of resolution, with a result on the sp...

Inventory management is considered to be an important field in Supply Chain Management because the cost of inventories in a supply chain accounts for about 30% of the value of the product. The service provided to the customer eventually gets enhanced once the efficient and effective management of inventory is carried out all through the supply chain. The precise estimation of optimal inventory ...

This paper proposes tools which will be used to optimize multi-level assembly under lead time uncertainty. One type of finished products and several types of components are considered. We suppose that each component has a fixed unit inventory cost and the finished product has backlogging and inventory holding costs per unit of time. The lead times of components are discrete random variables, an...

Abstract The present paper deals with the optimization of inventory networks which potentially exist in any supply chains. After introducing the theory of quick response production, we discuss the methodology to optimize the inventory levels of a production/inventory system considering multiple semifinished and finished products by a collaborative use of mathematical and simulation models. A nu...

Inventory optimization remains one of the key challenges in supply chain management. Typically, large amounts of working capital are tied up in today’s supply chains, restricting the opportunities for growth and impairing profitability. Furthermore, reported inventory figures become more and more important indicators for investors and other external stakeholders when assessing the efficiency an...

In this paper we formulate a two-stage stochastic quadratic optimization problem, that models a production planning problem of multiple products, over several time periods, with uncertain demands. This model considers quadratic inventory holding and demand backlogging recourse costs, which model the saturation phenomenon inherent to the increase of the inventory and/or backlogged demand levels....

This article illustrates the general problem known as ‘simulation optimization’ through an (s,S) inventory management system. In this system, the goal function to be minimized is the expected value of specific inventory costs. Moreover, specific constraints must be satisfied for some random simulation responses, namely the service or fill rate, and for some deterministic simulation inputs, name...

The global optimization of complex systems such as industrial systems often necessitates the use of computer simulation. In this paper, we suggest the use of reinforcement learning algorithms and artificial neural networks for the optimization of simulation models. Several types of variables are taken into account in order to find global optimum values. The benefits of our approach are demonstr...