scholarly journals Combined Sales Effort and Inventory Control under Demand Uncertainty

2013 ◽  
Vol 2013 ◽  
pp. 1-8
Author(s):  
Weili Xue ◽  
Xiaolin Xu ◽  
Ruxian Wang
Keyword(s):  
Inventory Control ◽  
Demand Uncertainty ◽  
Periodic Review ◽  
Review System ◽  
Setup Cost ◽  
Single Item ◽  
Effort Level ◽  
Numerical Studies ◽  
Optimal Policies ◽  
Batch Ordering

We study the joint inventory and sales effort management problems of a retailer in a broad context and investigate the optimal policies for a single item, periodic-review system. In each period, the demand is uncertain depending on the sales effort level exerted by the retailer, which incurs an associated cost. The retailer’s objective is to find a joint optimal inventory replenishment and sales effort policy to maximize the discounted profit over a finite horizon. We first consider a basic setting with zero setup cost and no batch ordering, under which the base stock list sales effort policy is optimal. Two extensions are then investigated: (1) the case with nonzero setup cost, under which we show that(s,S,e)policy is optimal; and (2) the case with batch ordering, under which we prove the optimality of the(r,Nq,e)policy. Finally, we conduct numerical studies to provide additional managerial insights.

scholarly journals AN INVENTORY MODEL FOR OPTIMIZATION OF A TWO-ECHELON PERIODIC-REVIEW SYSTEM

2016 ◽  
Vol 13 (1) ◽  
pp. 2
Author(s):  
Denilson Ricardo de Lucena Nunes ◽  
Antônio Fernando de Castro Vieira
Keyword(s):  
Service Level ◽  
Inventory Model ◽  
Minimal Cost ◽  
Periodic Review ◽  
Review System ◽  
Single Item ◽  
Integer Multiple ◽  
Proposed Model

In this article a single-item inventory model for a two-echelon system made up of a warehouse and N retailers is proposed. The warehouse adopts an interval between reviews that is an integer multiple of the interval used in the retailers. The retailers apply reviews at equal, synchronized intervals. The algorithm developed for the model determines the order-up-to level at each stockpoint so that the target service-level is met at the retailer at minimal cost to the system. In order to determine how effective the proposed model was, a simulation was performed to observe the service level for an item with normal demand in a three-retailer system using order-up-to levels supplied by the proposed algorithm. 

scholarly journals Heuristic Approach to Inventory Control with Advance Capacity Information

Organizacija ◽  
2009 ◽  
Vol 42 (4) ◽  
pp. 129-136
Author(s):  
Marko Jakšič ◽  
Borut Rusjan
Keyword(s):  
Inventory Control ◽  
Numerical Study ◽  
Heuristic Approach ◽  
Periodic Review ◽  
Single Item ◽  
Stochastic Inventory ◽  
Future Supply ◽  
Recent Developments ◽  
Business Conditions ◽  
Supply Capacity

Heuristic Approach to Inventory Control with Advance Capacity InformationThere is a growing trend of information sharing within modern supply chains. This trend is mainly stimulated by recent developments in information technology and the increasing awareness that accurate and timely information helps firms cope with volatile and uncertain business conditions. We model a periodic-review, single-item, capacitated stochastic inventory system, where a supply chain member has the ability to obtain advance capacity information (‘ACI’) about future supply capacity availability. ACI is used to reduce the uncertainty of future supply and thus enables the decision-maker to make better ordering decisions. We develop an easily applicable heuristic based on insights gained from an analysis of the optimal policy. In a numerical study we quantify the benefits of ACI and compare the performance of the proposed heuristic with the optimal performance. We illustrate the conditions in which the procedure is working well and comment on its practical applicability.

scholarly journals Optimization of Raw Material Inventory Control CV. Dirga Eggtray Pinrang Using Probabilistic Model with Backorder and Lostsales Condition

2022 ◽  
Vol 18 (2) ◽  
pp. 261-273
Author(s):  
Aprizal Resky ◽  
Aidawayati Rangkuti ◽  
Georgina M. Tinungki
Keyword(s):  
Inventory Control ◽  
Probabilistic Model ◽  
Probabilistic Models ◽  
Raw Material ◽  
Percentage Error ◽  
Linear Regression Method ◽  
Optimum Number ◽  
Periodic Review ◽  
Review System ◽  
Crs Model

This research discusses about the comparison of raw material inventory control CV. Dirga Eggtray Pinrang. It starts with forecasting inventory for the next 12 periods using variations of the time series forecasting method, where the linear regression method provides accurate forecasting results with a Mean Absolute Percentage Error (MAPE) value of 1,9371%. The probabilistic models of inventory control used are the simple probabilistic model, Continuous Review System (CRS) model, and Periodic Review System (PRS) model. The CRS model with backorder condition is a model that provides the minimum cost of Rp. 969.273.706,20 per year compared to another probabilistic model with the largest difference of Rp. 1.291.814,95 per year, with the optimum number of order kg, reorder level kg, and safety stock kg.

scholarly journals Inventory control policy for a periodic review system with expediting

2017 ◽  
Vol 49 ◽  
pp. 375-393 ◽  
Author(s):  
Yi Tao ◽  
Loo Hay Lee ◽  
Ek Peng Chew ◽  
Gang Sun ◽  
Vincent Charles
Keyword(s):  
Inventory Control ◽  
Control Policy ◽  
Periodic Review ◽  
Review System ◽  
Inventory Control Policy
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