Using Dynamic Programming-Based DSS to Manage Inventory at Jeppesen
نویسندگان
چکیده
We develop a system for managing inventory for Jeppesen Sanderson, Inc. — a major provider of aviation information products. The problem involves determining order quantities for charts used in flight manuals. These charts contain essential safety information that changes frequently, making standard methods for inventory management ineffective. We formulate the problem as a dynamic programming model and develop a simple heuristic solution procedure for determining order quantities. Based on this procedure we also developed a decision support system (DSS) and implemented it for 600 of the most expensive Jeppesen charts. The system has been in use since August 1998, generating actual annual cost reductions of over $800,000.
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