Consolidating product sizes to minimize inventory levels for a multi-stage production and distribution system

Consolidating product sizes to minimize inventory levels for a multi-stage production and distribution system

0.00 Avg rating0 Votes
Article ID: iaor1994511
Country: United Kingdom
Volume: 44
Issue: 7
Start Page Number: 637
End Page Number: 644
Publication Date: Jul 1993
Journal: Journal of the Operational Research Society
Authors: , ,
Keywords: distribution, manufacturing industries, inventory
Abstract:

The optimal design of a supply chain was approached in two phases by using: (1) a mathematical programming formulation and heuristic solution approach to minimize the distinct number of product types held at various points in the supply chain; and (2) a spreadsheet inventory model to estimate the safety stock needed to absorb random fluctuations in both demand and lead time throughout the system. This two-phased approach allowed management to quantify the effects of inventory required for locating parts of the supply chain in different geographic areas. The quantification of projected inventory requirements was a critical input used by senior management to clarify their final decision-making process.

Reviews

Required fields are marked *. Your email address will not be published.