Pub Date : 2020-09-16DOI: 10.1504/ijir.2020.10032128
Kuangnen Cheng, H. Chen
Inventory repositioning or pooling to efficiently align demand and supply is a strategic tool widely used in the car rental industry. This technique produces optimal results when demand is negatively correlated between locations within a pool. In practice, effective pricing decisions are expected to complement capacity adjustment, so activities of inventory repositioning can be minimised. Although matching demand increases profit, inventory repositioning unavoidably increases cost; thus, this investigation explores a different aspect of inventory repositioning, namely, effectiveness. The study utilises live pricing data from the US car rental industry, an industry where price is a major differentiator in the market, to detect whether any unwarranted inventory repositioning activity can be removed. Hypotheses are formulated to test whether discrete pricing between weekdays and weekends indeed exists within each pool. Consequently, if rivals do not follow this dogma of discrete pricing strategy, then there must be some invaluable insights. This exploration reveals numerous unforeseen factors such as the size of a rival, the volume of the demand, the destination character (leisure vs. business city) and a constant exorbitant daily rental rate, etc., make inventory repositioning ineffective. Ultimately, an effective repositioning model is proposed.
{"title":"Location pricing to effectively reduce inventory repositioning: the car rental industry","authors":"Kuangnen Cheng, H. Chen","doi":"10.1504/ijir.2020.10032128","DOIUrl":"https://doi.org/10.1504/ijir.2020.10032128","url":null,"abstract":"Inventory repositioning or pooling to efficiently align demand and supply is a strategic tool widely used in the car rental industry. This technique produces optimal results when demand is negatively correlated between locations within a pool. In practice, effective pricing decisions are expected to complement capacity adjustment, so activities of inventory repositioning can be minimised. Although matching demand increases profit, inventory repositioning unavoidably increases cost; thus, this investigation explores a different aspect of inventory repositioning, namely, effectiveness. The study utilises live pricing data from the US car rental industry, an industry where price is a major differentiator in the market, to detect whether any unwarranted inventory repositioning activity can be removed. Hypotheses are formulated to test whether discrete pricing between weekdays and weekends indeed exists within each pool. Consequently, if rivals do not follow this dogma of discrete pricing strategy, then there must be some invaluable insights. This exploration reveals numerous unforeseen factors such as the size of a rival, the volume of the demand, the destination character (leisure vs. business city) and a constant exorbitant daily rental rate, etc., make inventory repositioning ineffective. Ultimately, an effective repositioning model is proposed.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122243149","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-16DOI: 10.1504/ijir.2020.10032122
A. White, M. Censlive
This paper examines the conditions necessary to specify a robust element of a supply chain using control theory and proposes a new robustness criterion clearly separating robustness from resilience. Algebraic analysis, using the Mikhailov criterion to determine robustness, yields simple criteria for an automatic pipeline with variable inventory and order-based production control system (APVIOBPCS) model. Models implemented with either exponential delays or finite delays are found to be completely robust. A new robustness measurement criterion is defined and applied to a case study of RAM manufacture. Results show that the continuous model of an APVIOBPCS system with an exponential delay has a wider allowable range of process delay time than other models and the range of permissible delay is sufficient to cope with a substantial increase in process delay time while retaining adequate performance and stability. Use of nonlinear inventory generally reduces the robustness range. The techniques used here can also determine the effects of other parameters on robustness.
{"title":"Analysis of the robustness of a single-tier pipeline inventory model","authors":"A. White, M. Censlive","doi":"10.1504/ijir.2020.10032122","DOIUrl":"https://doi.org/10.1504/ijir.2020.10032122","url":null,"abstract":"This paper examines the conditions necessary to specify a robust element of a supply chain using control theory and proposes a new robustness criterion clearly separating robustness from resilience. Algebraic analysis, using the Mikhailov criterion to determine robustness, yields simple criteria for an automatic pipeline with variable inventory and order-based production control system (APVIOBPCS) model. Models implemented with either exponential delays or finite delays are found to be completely robust. A new robustness measurement criterion is defined and applied to a case study of RAM manufacture. Results show that the continuous model of an APVIOBPCS system with an exponential delay has a wider allowable range of process delay time than other models and the range of permissible delay is sufficient to cope with a substantial increase in process delay time while retaining adequate performance and stability. Use of nonlinear inventory generally reduces the robustness range. The techniques used here can also determine the effects of other parameters on robustness.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133163755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-16DOI: 10.1504/IJIR.2020.10028211
M. D. Lakshmi, P. Pandian
This paper develops a production stock model for deteriorating products with shortages under the effect of inflation and late paying in which demand is a function of selling price and time. In this article, the model is considered with different deterioration distributions and various time dependent holding costs. This model aids in maximising the total inventory cost by finding the two production periods, the consumption period and the shortage period. Numerical example is presented to understand the developed model. Also, the effect of changes in different parameters on the optimal total cost is graphically presented.
{"title":"A Production Stock Model for a Distributed Deteriorating Product with both Price and Time Dependent Demand Rate under Inflation and Late Paying Allowing Shortages","authors":"M. D. Lakshmi, P. Pandian","doi":"10.1504/IJIR.2020.10028211","DOIUrl":"https://doi.org/10.1504/IJIR.2020.10028211","url":null,"abstract":"This paper develops a production stock model for deteriorating products with shortages under the effect of inflation and late paying in which demand is a function of selling price and time. In this article, the model is considered with different deterioration distributions and various time dependent holding costs. This model aids in maximising the total inventory cost by finding the two production periods, the consumption period and the shortage period. Numerical example is presented to understand the developed model. Also, the effect of changes in different parameters on the optimal total cost is graphically presented.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115622755","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-09-16DOI: 10.1504/ijir.2020.10032125
R. Tripathi, Sachin Mishra
In this paper, a production inventory model is considered for stock-dependent demand with the effect of deterioration. Generally, every industrialised organisation wants to produce perfect quality commodities. However, due to real-life problems (raw material, political problem, labour problem, machine breakdown, lock off, etc.) products produced by manufacturing process are not having perfect quality. Damage, deterioration, spoilage also affect the production process. In this model, production rate is considered to be larger than demand rate. Mathematical formulation is presented to locate best possible cycle time and entire inventory cost. Numerical examples and sensitivity analysis are provided to authenticate the model projected in this study. Graphical illustrations are provided to discuss the optimality of the model.
{"title":"Innovative approach of stock-linked demand dependent production inventory model with decline deterioration","authors":"R. Tripathi, Sachin Mishra","doi":"10.1504/ijir.2020.10032125","DOIUrl":"https://doi.org/10.1504/ijir.2020.10032125","url":null,"abstract":"In this paper, a production inventory model is considered for stock-dependent demand with the effect of deterioration. Generally, every industrialised organisation wants to produce perfect quality commodities. However, due to real-life problems (raw material, political problem, labour problem, machine breakdown, lock off, etc.) products produced by manufacturing process are not having perfect quality. Damage, deterioration, spoilage also affect the production process. In this model, production rate is considered to be larger than demand rate. Mathematical formulation is presented to locate best possible cycle time and entire inventory cost. Numerical examples and sensitivity analysis are provided to authenticate the model projected in this study. Graphical illustrations are provided to discuss the optimality of the model.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-09-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121953312","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-04-02DOI: 10.1504/IJIR.2019.10020329
Dinesh Shenoy, Hoshiar Mal
Micro, small and medium enterprises (MSMEs) in India are focused on improving their inventory management function as part of government's program to increase their contribution to the gross domestic product (GDP). A plethora of inventory models are available in literature; these models are either very complex, or need reliable inventory cost data, or are not applicable to all classes of items and are, therefore, rendered ineffective. In this paper we have developed and presented a simple, yet effective, model that combines the characteristics of selective inventory control (SIC) and an exchange curve (EC). Combination of these techniques not only allows determination of ordering policy for all items, but also involves managers in decision making, thus providing MSMEs with a solution that is robust and practical. We also describe application of this model to a sample of 30 items in an auto components manufacturing firm. The case study demonstrates ease of implementation of the proposed model as well as solution completeness.
{"title":"A multi-item inventory model for small business - a perspective from India","authors":"Dinesh Shenoy, Hoshiar Mal","doi":"10.1504/IJIR.2019.10020329","DOIUrl":"https://doi.org/10.1504/IJIR.2019.10020329","url":null,"abstract":"Micro, small and medium enterprises (MSMEs) in India are focused on improving their inventory management function as part of government's program to increase their contribution to the gross domestic product (GDP). A plethora of inventory models are available in literature; these models are either very complex, or need reliable inventory cost data, or are not applicable to all classes of items and are, therefore, rendered ineffective. In this paper we have developed and presented a simple, yet effective, model that combines the characteristics of selective inventory control (SIC) and an exchange curve (EC). Combination of these techniques not only allows determination of ordering policy for all items, but also involves managers in decision making, thus providing MSMEs with a solution that is robust and practical. We also describe application of this model to a sample of 30 items in an auto components manufacturing firm. The case study demonstrates ease of implementation of the proposed model as well as solution completeness.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124333134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-29DOI: 10.1504/IJIR.2019.10020317
Chongping Chen
Options can be used to hedge risks caused by different types of uncertainty in supply chain management. The first part of this study examines how to use surety-options to coordinate a retailer-leader supply chain. It develops an option model in which the retailer guarantees sales and the supplier guarantees quality. The retailer and the supplier negotiate the options price and security regulations. The supplier can transfer part of the market risk to the retailer but in return has to bear the quality risk. By the theoretical analysis and the numerical examples, this study demonstrates that surety-options can coordinate the supply chain and achieve Pareto-improvement by encouraging the retailer to increase marketing efforts and the supplier to improve the quality.
{"title":"Sale-surety and quality warranty model based on options in supply chain","authors":"Chongping Chen","doi":"10.1504/IJIR.2019.10020317","DOIUrl":"https://doi.org/10.1504/IJIR.2019.10020317","url":null,"abstract":"Options can be used to hedge risks caused by different types of uncertainty in supply chain management. The first part of this study examines how to use surety-options to coordinate a retailer-leader supply chain. It develops an option model in which the retailer guarantees sales and the supplier guarantees quality. The retailer and the supplier negotiate the options price and security regulations. The supplier can transfer part of the market risk to the retailer but in return has to bear the quality risk. By the theoretical analysis and the numerical examples, this study demonstrates that surety-options can coordinate the supply chain and achieve Pareto-improvement by encouraging the retailer to increase marketing efforts and the supplier to improve the quality.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"150 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127273278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-29DOI: 10.1504/IJIR.2019.10020307
H. Chan
In this study, we conduct a comprehensive literature review on the inventory and pricing decisions under the supply chain coordination. To be specific, we review the publications from 1997 to 2017 and divide the papers into six areas for discussion, they are: decisions under integrated supply chain, supply contract, capital-constrained, competition, risk aversion, and information asymmetry. After reviewing the literature, we identify three major future research directions. First, we propose to explore different real world industrial supply contracts and the forms of demand function. Second, limited studies consider risk aversion behaviour of the supply chain members; hence, we also propose to examine the inventory and pricing decisions under supply chain coordination with risk-averse retailer and risk-averse supplier, respectively. Finally, it is also interesting to investigate different types of information asymmetry.
{"title":"Supply chain coordination with inventory and pricing decisions","authors":"H. Chan","doi":"10.1504/IJIR.2019.10020307","DOIUrl":"https://doi.org/10.1504/IJIR.2019.10020307","url":null,"abstract":"In this study, we conduct a comprehensive literature review on the inventory and pricing decisions under the supply chain coordination. To be specific, we review the publications from 1997 to 2017 and divide the papers into six areas for discussion, they are: decisions under integrated supply chain, supply contract, capital-constrained, competition, risk aversion, and information asymmetry. After reviewing the literature, we identify three major future research directions. First, we propose to explore different real world industrial supply contracts and the forms of demand function. Second, limited studies consider risk aversion behaviour of the supply chain members; hence, we also propose to examine the inventory and pricing decisions under supply chain coordination with risk-averse retailer and risk-averse supplier, respectively. Finally, it is also interesting to investigate different types of information asymmetry.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"2001 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128277364","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-29DOI: 10.1504/IJIR.2019.10020336
R. Tripathi, D. Singh, Surbhi Aneja
Even though publications on discussed cash flow inventory problem are steadily growing, modelling the manager's characteristics and their effect on his/her decisions and planning outcome has not attracted in the text. In order to fill this gap and model authenticity more precisely. This research work develops a new economic order quantity (EOQ) model using discounted cash flow (DCF) approach under multiple suppliers' trade credits with stock-linked demand for failing commodities. This paper is a generalisation of an offered inventory model with trade credits in which both demand and deterioration are stable. Here the assumption of constant demand relaxed by incorporating the idea of learning in stock-dependent demand using DCF approach. The projected inventory control model using DCF approach and learning in multiple suppliers' trade credit has most excellent presentation in competence. Mathematical formulation is provided for three different situations for finding optimal cycle time and all future cash flows. On the basis of optimal solution some useful results are also discussed. Numerical examples are provided to demonstrate the models proposed in this study. Sensitivity analysis is also presented dissimilar parameters.
{"title":"Inventory control model using discounted cash flow approach under multiple suppliers' trade credit and stock dependent demand for deteriorating items","authors":"R. Tripathi, D. Singh, Surbhi Aneja","doi":"10.1504/IJIR.2019.10020336","DOIUrl":"https://doi.org/10.1504/IJIR.2019.10020336","url":null,"abstract":"Even though publications on discussed cash flow inventory problem are steadily growing, modelling the manager's characteristics and their effect on his/her decisions and planning outcome has not attracted in the text. In order to fill this gap and model authenticity more precisely. This research work develops a new economic order quantity (EOQ) model using discounted cash flow (DCF) approach under multiple suppliers' trade credits with stock-linked demand for failing commodities. This paper is a generalisation of an offered inventory model with trade credits in which both demand and deterioration are stable. Here the assumption of constant demand relaxed by incorporating the idea of learning in stock-dependent demand using DCF approach. The projected inventory control model using DCF approach and learning in multiple suppliers' trade credit has most excellent presentation in competence. Mathematical formulation is provided for three different situations for finding optimal cycle time and all future cash flows. On the basis of optimal solution some useful results are also discussed. Numerical examples are provided to demonstrate the models proposed in this study. Sensitivity analysis is also presented dissimilar parameters.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123573616","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-03-29DOI: 10.1504/IJIR.2019.10020327
Salem M. Aljazzar, Amulya Gurtu
One of the supply chain coordination methods that has been central to the literature is the joint economic lot-sizing (JELS) problems. The JELS methods have shown to reduce the total cost of a supply chain system. This paper revisits the work of Goyal (1988), one of the earliest papers on JELS, where the vendor produces an integer multiplier of equal size shipment lots for a buyer and provides three observations on that. Subsequently, two new models have been developed based on the second and third observations. This paper provided numerical examples and sensitivity analyses to illustrate the similarities and differences among all models. The supply chain performance improves with alternate models for a wider range of attributes, while Goyal's model provides better results for the specific example.
{"title":"Observations on 'a joint economic-lot-size model for purchaser and vendor'","authors":"Salem M. Aljazzar, Amulya Gurtu","doi":"10.1504/IJIR.2019.10020327","DOIUrl":"https://doi.org/10.1504/IJIR.2019.10020327","url":null,"abstract":"One of the supply chain coordination methods that has been central to the literature is the joint economic lot-sizing (JELS) problems. The JELS methods have shown to reduce the total cost of a supply chain system. This paper revisits the work of Goyal (1988), one of the earliest papers on JELS, where the vendor produces an integer multiplier of equal size shipment lots for a buyer and provides three observations on that. Subsequently, two new models have been developed based on the second and third observations. This paper provided numerical examples and sensitivity analyses to illustrate the similarities and differences among all models. The supply chain performance improves with alternate models for a wider range of attributes, while Goyal's model provides better results for the specific example.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116605003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-08-09DOI: 10.1504/IJIR.2018.10013844
N. Sharma, P. Vrat
This paper presents a review of the advances in stock-dependent demand inventory literature for the last three decades. The available relevant models have been classified into a number of categories and their principal features have been discussed in brief to bring out more pertinent information regarding model development. An extensive analysis of the literature is presented to identify the future research scope and the factors which are responsible for the poor applicability of these models. Moreover, a very important and missing link between the stock-dependent demand phenomenon and waste has been recognised as a potential field for exploration in materials management as well as in our day-to-day consumption pattern. It has been emphasised that many socio-economic problems which have a root cause in wasteful resource consumption can be solved by incorporating the phenomenon in our waste management practices.
{"title":"Inventory models with stock-dependent demand: a comprehensive review and its linkage with waste management","authors":"N. Sharma, P. Vrat","doi":"10.1504/IJIR.2018.10013844","DOIUrl":"https://doi.org/10.1504/IJIR.2018.10013844","url":null,"abstract":"This paper presents a review of the advances in stock-dependent demand inventory literature for the last three decades. The available relevant models have been classified into a number of categories and their principal features have been discussed in brief to bring out more pertinent information regarding model development. An extensive analysis of the literature is presented to identify the future research scope and the factors which are responsible for the poor applicability of these models. Moreover, a very important and missing link between the stock-dependent demand phenomenon and waste has been recognised as a potential field for exploration in materials management as well as in our day-to-day consumption pattern. It has been emphasised that many socio-economic problems which have a root cause in wasteful resource consumption can be solved by incorporating the phenomenon in our waste management practices.","PeriodicalId":113309,"journal":{"name":"International Journal of Inventory Research","volume":"135 2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131097689","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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