Documente Academic
Documente Profesional
Documente Cultură
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demand
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order
customers
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facility items
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supplier items
Distributes items from current inventory to customers Customer demand is discrete Simple one type of item
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Inventory Policy
Transaction Reporting
Inventory review after each transaction Signicant labor may be required Less likely to experience shortage
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Conceptual Model
Inventory System Costs Holding cost: Shortage cost: Setup cost: Item cost: Ordering cost: for items in inventory for unmet demand xed cost when order is placed per-item order cost sum of setup and item costs
Additional Assumptions Back ordering is possible No delivery lag Initial inventory level is S Terminal inventory level is S
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Specication Model
Time begins at t = 0 Review times are t = 0, 1, 2, . . . li 1 : inventory level at beginning of i th interval oi 1 : amount ordered at time t = i 1, (oi 1 0) di : demand quantity during i th interval, (di 0) Inventory at end of interval can be negative
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Inventory level is reviewed at t = i 1 If at least s , no order is placed If less than s , inventory is replenished to S oi 1 = 0 S l i 1 l i 1 s l i 1 < s
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: 1 2 3 4 5 6 7 8 9 10 11 12 : 30 15 25 15 45 30 25 15 20 35 20 30
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Output Statistics
di
i =1
o =
1 n
oi .
i =1
For Example 1.3.1 data =o d = 305/12 25.42 items per time interval
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Flow Balance
Average demand and order must be equal Ending inventory level is S Over the simulated period, all demand is satised Average ow of items in equals average ow of items out
customers d facility o supplier
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Holding and shortage costs are proportional to time-averaged inventory levels Must know inventory level for all t Assume the demand rate is constant between review times
80 S l(t) 40 s 0 20 40 0 1 2 3 4 5 6 7 8 9 10 11 12
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l(t)
li 1 di
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l(t) = l
(t i + 1)di
(i, li 1 di )
t i1 i
Inventory level at any time t is an integer l (t ) should be rounded to an integer value l (t ) is a stair-step, rather than linear, function
li 1 . . . . . . . (i 1, li . . 1 ) . . . . . . . . . . . . .
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l(t) = l
(t i + 1)di + 0.5
(i, li 1 di )
l(t)
li 1 di
t i1 i
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l (t )dt
i 1
li+ =
l (t )dt
i 1
li =
l (t )dt
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l(t)
li 1 di
i1
l (t ) dt =
i 1
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l(t) 0
li 1 di
. . . . .
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t
(i, li 1 di )
i1
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l (t ) becomes negative at time t = = i 1 + (li1 /di ) Time-averaged holding and shortage levels for i th interval computed as the areas of triangles
li+ = li =
l (t ) dt = =
i 1 i
(li1 )2 2di
l (t ) dt = =
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li+
1 l = n
n i =1
li
Note that time-averaged shortage level is positive The time-averaged inventory level is 1 l= n
n 0
l (t ) dt = l+ l
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Computational Model
sis1 is a trace-driven computational model of the SIS Computes the statistics , o d , l +, l and the order frequency u u = number of orders n
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Trace le sis1.dat contains data for n = 100 time intervals With (s , S ) = (20, 80) = 29.29 o =d u = 0.39 l + = 42.40 l = 0.25
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Operating Costs
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Case Study
Automobile dealership that uses weekly periodic inventory review The facility is the showroom and surrounding areas The items are new cars The supplier is the car manufacturer ...customers are people convinced by clever advertising that their lives will be improved signicantly if they purchase a new car from this dealer. (S. Park) Simple (one type of car) inventory system
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Limited to a maximum of S = 80 cars Inventory reviewed every Monday If inventory falls below s = 20, order cars sucient to restore to S For now, ignore delivery lag Costs: Item cost is Setup cost is Holding cost is Shortage cost is citem csetup chold chold = = = = $8000 $1000 $25 $700 per item per week per week
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The average total operating cost per time interval is their sum For the stats and costs of the hypothetical dealership:
item cost : setup cost : holding cost : shortage cost : $8000 29.29 $1000 0.39 $25 42.40 $700 0.25 = = = = $234, 320 $390 $1, 060 $175 per per per per week week week week
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Cost Minimization
By varying s (and possibly S ), an optimal policy can be determined Optimal minimum average cost , and d depends only on the demands Note that o =d Hence, item cost is independent of (s , S ) Average dependent cost is avg setup cost + avg holding cost + avg shortage cost
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Experimentation
Let S be xed, and let the demand sequence be xed If s is systematically increased, we expect:
average setup cost and holding cost will increase as s increases average shortage cost will decrease as s increases average dependent cost will have U shape, yielding an optimum
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600 500
shortage cost
400 300 200 100 0 2000 1900 1800 1700 1600 1500 s 1400 0
10 15 20 25 30 35 40 total cost
s 5 10 15 20 25 30 35 40
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