Investment in improved inventory accuracy in a decentralized supply chain
Künye
Uçkun, C., Karaesmen, A. F. & Savaş, S. (2008). Investment in improved inventory accuracy in a decentralized supply chain. International Journal of Production Economics, 113(2), 546-566. doi:10.1016/j.ijpe.2007.10.012Özet
It is known that inaccurate inventory records can lead to profit losses in a supply chain. Inventory records may not be correct due to various reasons such as transaction errors, misplacement, shrinkage, etc. In order to eliminate inventory inaccuracy, companies may invest in new information technologies such as radio frequency identification (RFID). In this paper, we consider a supply chain consisting of a retailer (distributor) and a supplier. We assume a single-period newsvendor-type setting where the retailer purchases the items from the supplier and distributes them to the regional warehouses. The paper focuses on the problem of finding the optimal investment levels that maximize profit by decreasing inventory inaccuracy. The optimal level of investment is examined both for the centralized and the decentralized systems under two scenarios: inventory sharing between the warehouses is allowed and not allowed. The coordination problem is also considered for both scenarios. Finally, several extensions of the model are considered: asymmetric warehouse parameters, demand and inventory inaccuracy correlation and imperfect RFID implementation.
Kaynak
International Journal of Production EconomicsCilt
113Sayı
2İlgili Öğeler
Başlık, yazar, küratör ve konuya göre gösterilen ilgili öğeler.
-
Modeling repair demand in existence of a nonstationary installed base
Hekimoğlu, Mustafa; Karlı, Deniz (Elsevier B.V., 2023-09)Life cycles of products consist of 3 phases, namely growth, maturity, and decline phases. Modeling repair demand is particularly difficult in the growth and decline stages due to nonstationarity. In this study, we suggest ... -
A mathematical model for perishable products with price- and displayed-stock-dependent demand
Önal, Mehmet; Yenipazarlı, Arda; Kundakçıoğlu, Ömer Erhun (Elsevier Ltd, 2016-12)We introduce an economic order quantity model that incorporates product assortment, pricing and space-allocation decisions for a group of perishable products. The goal is to maximize the retailer's profit under shelf-space ... -
A note on "The economic lot sizing problem with inventory bounds"
Önal, Mehmet; Van den Heuvel, Wilco; Liu, Tieming (Elsevier Science BV, 2012-11-06)In a recent paper, Liu [3] considers the lot-sizing problem with lower and upper bounds on the inventory levels. He proposes an O(n(2)) algorithm for the general problem, and an O(n) algorithm for the special case with ...