Inventory Management Model Research Articles

Supply chain digitalization

In today’s world, competition between enterprises is characterized by competition between production value chains. The model of inventory management in terms of supply chain management allows you to combine the resources of enterprises and strengthen their cooperation with other industries. This model enables the rational use of stocks, accurately refl ecting demand and reducing their cost, increasing competitiveness, optimizing the overall structure of the production value chains, which is the key to ensuring the smooth transfer of information between the links of the supply chains. Such models and ideas of inventory management will be applied by an increasing number of enterprises.The development of supply chains in general and the information subsystem in particular is analyzed. The characteristics of inventory management within the framework of the supply management system are considered. The weaknesses of the traditional management model at the current stage of digitalization of transportation are identifi ed, the strengths of the new management model are shown, which will signifi cantly reduce the cost of storing stocks within the supply chain and quickly respond to customer needs. The evolution of supply chains, the digitalization of production and transport processes create the conditions for organizing a single network information platform for the logistics chain. Thus, a phase of transition to network logistics will be implemented, which will increase the effi ciency of production value chains.

Comparative Statics Analysis of An Inventory Management Model with Dynamic Pricing, Market Environment Fluctuation, and Delayed Differentiation

We consider a general joint pricing and inventory management model with delayed differentiation, in which a firm serves a market with multiple products made from a generic one. The firm holds inventory for the generic product which is produced using multiple resources. Moreover, the market size, the attractiveness of each product, the firm's productivity, and the procurement cost of each resource all evolve over the planning horizon driven by an exogenous Markov process. Comparative statics analysis is essential for studying this model, offering insights on the impact of market environment fluctuation upon the firm's optimal pricing and inventory policy. Hence, we propose a new approach that combines the advantages of implicit function theorem (IFT) and monotone comparative statics (MCS) approaches to perform comparative statics analysis in our joint pricing and inventory management model under market environment fluctuation. The new approach applies to our model where the standard IFT and MCS methods are not easily amenable. Using our new comparative statics approach, we characterize the optimal pricing and production policy of the firm, and offer insights on how the firm should adaptively respond to market environment fluctuations.

Моделювання управління запасами в бюджетному процесі промислового підприємства

The article is aimed at studying and substantiating the role of stocks in the budget process of an industrial enterprise, as well as elaborating a dynamic economic and mathematical model of inventory management, which would take into account the stochastic nature of demand for products and maximize profits that directly depend on the volume of output and, accordingly, on the stocks of finished products and raw materials available in stock. Since stocks affect profits, which, in turn, reflect a positive financial result of the enterprise, the application of the elaborated model will be the key to more effective activities of the economic entity as a whole. In addition, the use of the elaborated model simplifies the process of developing the enterprise’s budgets. The article proposes a perspective method for solving the problem of inventory management of an industrial enterprise in the budget process, taking into account the stochastic nature of demand. The simulation model of order formation and dynamic model of inventory management are elaborated, which allows to determine for each individual period the optimal production volumes that contribute to maximizing the total profit of the enterprise. The connection of stocks and budget is determined and the role of stocks in the budget process is established, as well as the need for research in this area. The elaborated model was applied at an industrial enterprise, which confirmed its effectiveness. Calculations for two different strategies for the purchase of raw materials are made and the optimal volumes of monthly production are determined. The result obtained through the use of the described methods is analyzed. The elaborated model can be used in the planning and development of budgets at any enterprise engaged in production activities. The actual direction of further research is the development and automation of the budgets consolidation system.

Simulation model of the car service inventory management system: input parameters

The paper describes the problem of car service inventory management and the need for operational management of their quantity. The purpose and use of simulation modeling for solving the problem of order management are indicated. A model of inventory management at car service enterprises is constructed using simulation methods. The components of the simulation model are determined, which include controlled managed parameters, controlled unmanaged parameters, uncontrolled parameters and output indicators. For each component a characteristic is given. The input parameters of simulation modeling are presented, including the volumes of orders for car service repair parts. The input parameters used for the simulation are based on actual car dealership orders. Based on the data obtained, calculations of the arithmetic mean, standard deviation, median, coefficient of variation, asymmetry and kurtosis are performed. A distribution histogram is constructed for individual parameters. The results of the study reveal an exponential distribution of the volume of orders.

Hybrid meta-heuristic-based inventory management using block chain technology in cloud sector

This paper plans to develop an inventory management model in the supply chain with cloud and block chain assistance. This paper considers the inventory management of a supply chain that involves multiple suppliers, manufacturers, and distributers. The data management is done by the block chain technology, where each distributer holds a hash function to store its data, which cannot be restored by the other distributers. The proposed model intends to reduce the multi-objective inventory cost involving transaction cost, inventory holding cost, shortage cost, transportation cost, and time cost. The hybridisation of two meta-heuristic algorithms like spider monkey optimisation (SMO) and sea lion optimisation (SLnO) termed as spider monkey local leader-based sea lion optimisation algorithm (SMLL-SLnO) is used to improve the inventory management model. Finally, the feasibility and effectiveness of the proposed optimisation model are validated by comparing over the other traditional models.

Метод пошуку рішень у динамічній моделі управління запасами за невизначеності

The article considers the method of finding solutions in the dynamic model of inventory management under uncertainty. An algorithm for formulating an optimal inventory management strategy is proposed using the developed method of determining the size of the optimal order lot and forming an optimal supply plan under conditions of stochastic demand. The developed solution is aimed at ensuring profit maximization in goods supply operations due to the optimization of inventory maintenance costs, an increase in inventory turnover ratio, a reduction of working capital maintenance costs, etc. The modelling was performed considering the mono-product strategy, the even distribution of sales in the cycle, and the instant supply of goods at the beginning of the cycle. The most common variables were listed as limitations of the model, which allows for a demonstration of the operation of the algorithm. The paper compares the simulation results of alternative methods of planning the inventory management process. The given results indicate the superiority of the proposed model.

Neutrosophic Treatment of the Static Model of Inventory Management with Deficit

In this article, when the inability to manage inventory is allowed in exchange for certain fines, managers can then allow the remaining stock to run out and accumulation the orders until compensation is reinstated. The idea depends on the amount of stock deficit, which could be small in comparison to the storage cost. This refers to inventory models with deficits and is used to store damageable material. In order to manage these models, deficit costs should pair with storage costs by applying a mathematical model that illustrates the state in which deficit occurs by satisfying a requirement for one item. All that follows the principles of static modelling with a deficit and the ideal solution would be the most appropriate. We know that the ideal amount depends on the inventory demands. In the classical logic, we define the required storage amounts by the inventory cycle which has a constant value during the inventory cycle; however, that logic overlooks the fluctuation of inventory demands in reality. Therefore, this manuscript conducts a study about static inventory models with a deficit for one material based on neutrosophic logic, which takes into consideration the indeterminate states and hence it provides more precise results, thus, it gives institutions a stable work environment with the least costs.

Two-echelon Inventory Management for Sustainable Pharmaceutical Supply Chain through Waste Reduction

Improving sustainability in Pharmaceutical Supply Chain (PSC) becomes the primary concern for its involved members. It lends major challenges to its management as it has economic, social, and environmental responsibilities more weighed than other supply chains. Providing the day-to-day need for medicines must be satisfied while taking into account the use of the economic resource, customer satisfaction, and the impact of pharmaceutical waste on the environment. Medicines waste affects healthcare expenses and harms the environment. Therefore, avoiding unused medication leftover through the pharmaceutical chain presents an efficient approach to attaining a sustainable supply of medicines. This article aims to deal with the sustainability of a PSC by minimizing the deterioration rate of medicines at both distributor and hospitals sites. We propose an inventory management model based on a mixed-integer non-linear program (MINLP) that seeks the optimal replenishment order quantity of multiple types of products and the shipment time in a two-echelon PSC consisting of a pharmaceutical company (PC), a central pharmacy (CP), and multiple hospitals over a planning horizon, while considering shipment costs, perishability, and shortage constraints.

A Cold Chain Logistics with IoT and Blockchain Scalable Project for SMEs: First Phase

Today, the role of digital technologies represents a competitive advantage in the logistics of any supply chain and, at the same time, a great challenge for organizations, especially for SMEs and micro-enterprises, which are a fundamental part of the national economy.The development of this study is part of a larger project that has to do with the design of a cold chain inventory management model through IoT, Blockchain, and Cloud Computing for SMEs in Colombia. The work carried out in this first part consisted of a proof of concept (POC) to verify the technical feasibility of Industry 4.0 technologies in the management of goods in the last-mile urban distribution process in the cold chain. We assemble sensors in a portable device to measure control variables in the cold chain, develop the software that supports it, and carry out tests in a controlled setting. The results validate the expected functionality of the prototype but, above all, disclose conditions that must be considered. Finally, we discuss the applicability of the proposed device in the practical world and the future challenges for the subsequent phases.

Using blockchain technology to extend the vendor managed inventory for sustainability

Nowadays, Information Technology (IT) is changing the way traditional enterprise management concepts work. One of the most dominant IT achievements is the Blockchain Technology. This technology enables the distributed collaboration of stakeholders for their interactions while fulfilling the security and consensus rules among them. This paper has focused on the application of Blockchain technology to enhance one of traditional inventory management models. The Vendor Managed Inventory (VMI) has been considered one of the most efficient mechanisms for vendor inventory planning by the suppliers. While VMI has brought competitive advantages for many industries, however its centralized mechanism limits the collaboration of a pool of suppliers and vendors simultaneously. This paper has studied the recent research for VMI application in industries and also has investigated the applications of Blockchain technology for decentralized collaboration of stakeholders. Focusing on sustainability issue for total supply chain consisting suppliers and vendors, it has proposed a Blockchain based VMI conceptual model. The different capabilities of this model for enabling the collaboration of stakeholders while maintaining the competitive advantages and sustainability issues have been discussed.

Information and analytical technologies in trading enterprise management

The article considers economic and mathematical methods and information technologies for managing the processes of trade enterprise. Economic and mathematical models for solving warehousing logistics problems, stochastic and statistical models of inventory management, models of optimal management and queuing systems are analyzed. Flexible tools are used to increase the efficiency of trade enterprise management and timely decision-making. The tools combine the use of mathematical models, a simulation model and information-analytical technologies. The study was carried out in three stages. The simulation model is designed in the software iThink. The simulation model was used to forecast sales, incomes, expenses and profit, processes of goods purchases, which take into account the factors of seasonality and the rest of production both in a warehouse and in the enterprise as a whole. The efficiency indicators of the enterprise are calculated and the possibility of payroll depending on income and dividends to owners is analyzed. An investment project has been designed in the software «Alt-Invest». This project analyzes the possibility of opening a new store with regard for financial activities, the development of a business plan for an investment project, the preparation of financial feasibility study, and the assessment of the impact of external factors and internal parameters on the overall effectiveness of the project. A comparative assessment is carried out in order to select the most promising project option. ABC-XYZ scenario was designed in the software platform Loginom. Using this analysis, the product range was divided into groups depending on the revenue and financial capabilities of the enterprise.

Inventory Management Models in Supply Chain and Students Learning Approach

Inventory Management Models in Supply Chain and Students Learning Approach

FINANCIAL ANALYSIS OF VIROBNICHESKY STOCK DYNAMIC MODELS

The statistic provides an assessment of the rationalization of the assortment of aromatic carbohydrates in terms of their current characteristics, an increase in the rate of new products in naphtha chemistry with the development of a life cycle, which has been accelerated by new products. The increase in the number of investments in the market and the increase in the arrival of investments on the market is intertwined with an insignificant rate of increase in costs in the innovation activity due to the rapid growth of a part of the industry on the market of aromatic carbohydrates. It’s broken down, but there is no need to organize the process of securing, especially when the production of good quality products is not necessary, it’s not necessary to get effective robotics in the minds of the hospitality competition. A comprehensive approach to nutritional differentiation of the power of the entire assortment of products has been introduced, hourly, when I go to the market with free carbohydrates and the needs of the competitors and the behavior of competitors. The decision has been made to predict the production rate, the value of the most economical value of the party and the point of replacement of the three types of products for the victorious dynamic model of inventory management. Methods of evaluating the mathematical costs for the sake of loss and expense for the time being, not satisfied with the drink, because of the details of the detailed picture of the technological process for the product. Organizational aspects of the establishment of a progressive brand of carbohydrates on the basis of the advanced technology of rectification of catalytic reforming of flavored gasoline. The task of the calendar scheduling of the production and of the quick delivery to the residents is of the utmost importance for the delivery of the item of unimportance to the issue in the previous period and of the number of tasks, which were not given until the end of the deadline. The stochastic nature of the process of securing is secured with an effective strategic reserve, which falls into the type of imaging in the supply.

Enhanced Inventory Management Using Blockchain Technology Under Cloud Sector Enabled by Hybrid Multi-Verse with Whale Optimization Algorithm

Inventory cost control is an essential factor in supply chain management. If the supplier’s inventory is insufficient, then the chance to trade the product will be reduced. The manufacturer’s inadequate material inventory will have an effect in termination of production, delays, and a waste of resources and time. On the other hand, postponed transportation will certainly raise costs such as transportation costs and cancellation of orders. Therefore, the operation costs of enterprises will be more, which will lower profits. In conventional supply chains, inventory costs control is not feasible for the view of the entire supply chain. The main intent of this paper is to plan for intelligent inventory management using blockchain technology under the cloud sector. The inventory management of the supply chain includes “multiple suppliers, a manufacturer, and multiple distributors”. The proposed inventory management models consider some significant costs like “transaction cost, inventory holding cost, shortage cost, transportation cost, time cost, setup cost, backordering cost, and quality improvement cost”. This multi-objective cost function is minimized by a novel hybrid optimization algorithm; the concept of WOA is integrated to produce the new algorithm which is termed as Whale-based Multi Verse Optimization (W-MVO) algorithm. For securing the data of distributors, using blockchain technology in a cloud environment helps from the leakage of data to other unauthorized users. Once the cost is reduced in all aspects based on the proposed hybrid optimization algorithm, the distributer will store the concerning data in the blockchain under the cloud sector, where each distributer holds a hash function to store its data, which cannot be restored by the other distributers. The valuable performance analysis over the conventional optimization algorithms proves the effective and reliable performance of the proposed model over the conventional models.

Recent Trends in Sustainable Inventory Models: A Literature Review

Greenhouse gas emissions are increasing global warming significantly, hence the need for manufacturing companies to include sustainability strategies in their supply chain to reduce emissions generated by their operations. This article aims to provide a systematic literature review on integrating sustainability issues into inventory management models to support scholars and practitioners in decision-making processes according to their market requirements. Thus, this paper discusses the most relevant papers published on inventory management topics that consider environmental criteria such as greenhouse gas emissions, ecological quality controls, unsold inventory, and fixed carbon costs. Therefore, we have extended the literature review to incorporate sustainability considerations in inventory models involving an industry’s environmental and social effects. As a result, in this article, a detailed analysis of the existing literature and related weaknesses provide meaningful discussions on crucial issues for future field research avenues in the field.

Modeling of operating modes of woodworking equipment

The effective use of the production capabilities of logging and woodworking equipment largely depends on the compliance of their design features and work organization parameters in specific production and technical conditions. This is achieved in the process of technological calculations with the determination of the optimal modes of their functioning. The paper proposes a methodology and results of modeling on analytical models when sawing logs. The proposed method consists in the fact that in order to maintain stocks at the calculated level, eliminate downtime of machines with the highest productivity in operations with a lower productivity, the duration of their operation is increased by the time calculated for specific conditions. As a result of the work, the analysis of methods and models of timber inventory management was carried out. The main features of woodworking production and its technological process are given. It has been established that the technological process is a production line of mixed aggregation with flexible connections.

Algorithms for Solving Inverse Problems of Simulation Modeling

This paper is devoted to solving inverse problems of simulation modeling, which are presented in the form of an optimization problem. The article discusses the use of direct search methods taking into account the specifics of the problem under consideration. Due to the fact that these methods require a lot of computational experiments, two algorithms based on approximation were proposed for solving the problem. The first algorithm consists in determining and evaluating the parameters of the function of dependence (which can be linear or non-linear) of the output variable on the input variables and solving the inverse problem by minimizing increments of the arguments. In the second algorithm a linear function of dependence is iteratively constructed using the data set generated by changing the input variables in given increments, and the inverse problem is solved by minimizing increments of the arguments. The classical inventory management model with a threshold strategy is considered as an example. The inverse problem was solved using direct search and approximation-based methods.

Six Impossible Things Before Breakfast

Six Impossible Things Before Breakfast

Design of multi-warehouse inventory model for an optimal replenishment policy using a Rain Optimization Algorithm

In most of the inventory management model, deterioration of item is considered as a common problem. In this study, non-instantaneous type of items are taken to examine a new decision making model of Optimal Replenishment Policy (ORP) scheme with multi-ware house multi-item model. This model is solved by a recent optimization algorithm named as Rain Optimization Algorithm (ROA) by considering different parameters like total cost, total delivery time and total investment on each item. Moreover, this research is developed with multi-warehouse model in which one is an own house and others are rented houses with restricted volume of storage. In particular period of time, deterioration of item is considered as constant and demand of items are assumed as stock independent. Shortage are allowed in the own warehouse model with backlogging. Major goal of this research is to discover retailers’ replenishment policy to obtain maximum total profit on each items with less total cost. Matlab tool is utilized to illustrate the proposed methodology as well as to solve the mathematical model. Footwear inventory management dataset engaged to evaluate the robustness of proposed methodology. Sensitivity and statistical analysis are made to examine the influence of different significant metrics on system decision variables and its outcomes are compared with different optimization algorithms.

Integrated optimization of inventory, replenishment and vehicle routing for a sustainable supply chain under carbon emission regulations

Integrated decision regarding routing plan for vehicles, inventory management and operational adjustments confer minimum cost and emission for a supply chain network. In view of the aforementioned facts, this paper develops a sustainable supply chain inventory management (SSCIM) model for a single-vendor and multiple-buyers’ integrated approach considering item deterioration and imperfect production simultaneously. A fleet of vehicles available at the vendor location are assigned to serve the buyers. Emissions generated through production, rework, transportation, warehousing and disposal of deteriorated items are taken into consideration. For the purpose of a cleaner and sustainable environment, several emission regulatory policies, namely, carbon tax, carbon cap-and-offset and cap-and-trade, are implemented so as to alleviate the effect of carbon emission by reducing its volume. The aforesaid scenarios are mathematically formulated in a bi-objective framework minimizing both total cost and overall emissions simultaneously subject to a well-built set of constraints. The bi-objective SSCIM focuses on obtaining a trade-off between cost and emissions, thereby determining the optimal production–shipment policy and a proper routing plan for the fleet of vehicles. For better illustration of the developed theory, numerical experiments are also carried out followed by an extensive discussion on the sensitivity analysis for various parameters.