Abstract
In order to maximize inventory benefits or minimize costs, reliability and cost of inventory control models need to be identified and analyzed. These importance measures are one important approach to recognize and evaluate system weaknesses. However, importance measures have fewer applications in inventory systems’ reliability. Considering the cost, this paper mainly discusses the reliability change of performance parameters with the importance measures in inventory systems. The calculation methods of differential importance and Birnbaum importance are studied in the inventory control model with shortages. By comparing the importance values of various parameters in the model, the optimization analysis of the inventory model can be used to identify the key parameters, so as to effectively reduce the total inventory cost. The importance order and the identification of key parameters are helpful to increase the operational efficiency of the inventory control and provide effective methods for improving the inventory management. Lastly, a case study with a shortage and limited inventory capacity is used to demonstrate the proposed model.
Highlights
Importance measures refer to the influence on system reliability when a single or multiple components of a system fail or change state, which is a function of component reliability parameters and system structure
Issues which have become the focus of research are: How to use the system reliability and importance measure to study the influence of the parameters in the inventory system on the inventory system? How to calculate the importance of different parameters and determine the parameters that have the greatest impact on the system? this paper analyzes the reliability of the inventory system
This hints that Birnbaum importance and differential importance measures can effectively identify the importance of each parameter in a model, due to their own advantages and disadvantages, it is better to combine them together to provide a better solution for decision-makers in practice
Summary
Importance measures refer to the influence on system reliability when a single or multiple components of a system fail or change state, which is a function of component reliability parameters and system structure. Manna et al [22] studied an imperfect production inventory model with production system reliability under two-layer supply chain management. Scholars have continuously improved and optimized the models from various perspectives and fields, have neglected the application of importance measures to effectively identify and optimize systems in this field. Issues which have become the focus of research are: How to use the system reliability and importance measure to study the influence of the parameters in the inventory system on the inventory system? According to the reliability of the inventory system, a cost-based inventory system importance model is proposed to study the importance of different parameters, which provides some support and reference for enriching importance measures and optimizing inventory models.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
