This paper presents a case study of applying a Bayesian approach to forecast demand and subsequently determine the appropriate parameter S of an (S-1,S) inventory system for controlling spare parts of electronic equipment. First, the problem and the current policy are described. Then, the basic elements of the Bayesian approach are introduced and the procedure for calculating the appropriate pa...

We consider a manufacturer that must fill stochastic demand. When shortages occur, the manufacturer may choose to meet the unmet demand with overtime production and/or by premium freight shipments. We derive optimal production policies for regular and overtime production and discuss the tradeoffs involved.

The article studies, with the level constraints in short supply, the inventory decision model of the minimum total annual cost of the supply chain which, composed of a single supplier and multiple buyers, involving supplier’s lead time as a decision variable, replacing the cost of shortages with the level in short supply, and has solved the difficult problem in the practice.

A dynamic booking policy for multiple fare classes that share the same seating pool on one leg of an airline flight, when seats are booked in a nested fashion and when lower fare classes book before higher ones, is determined. The dynamic policy of airline booking makes repetitive use of an optimal static policy over the booking period, based on the most recent demand and capacity information. ...

We address a problem of inventory management of spare parts in the context of a large energy company, producer of oil and gas. Spare parts are critical for assuring operational conditions in offshore platforms. About 200,000 different items are held in several inventory plants. The inventory system implemented at the company corresponds to a min-max system. The control parameters are decided ba...

The inventory control systems are responsible for the optimal operation of the inventory processes of the automotive companies. Generally, the optimisation of the inventory control system manifests itself in a target conflict representing the implementation of the optimal operation in economic and reliability terms. For the process optimisation, the control parameters of the regulation system s...

An adaptive control of a reverse logistic inventory system with unknown deterioration and disposal rates is considered. An adaptive control approach with a feedback is applied to track the inventory levels toward their goal levels. Also, the updating rules of both deterioration and disposal rates are derived from the conditions of asymptotic stability of the reference model. Important character...

As a technology solution, radio frequency identification (RFID) has proven increased efficiency and accuracy within traditional production and inventory control environments. RFID also offers increased transparency, accountability, and quality across the healthcare industry. This paper provides an a priori perspective to implementing RFID applications in a hospital environment. The paper descri...

In the U.S.A., 70 percent of the manufactured cement and 43 percent of aggregates is used in Ready-Mixed Concrete (RMC) plants. So a material inventory control system is needed to form a consumption pattern for this material to optimize warehousing cost and ordering in RMC plants. Such a material inventory control system of batching plants could be applied as an approach for optimal estimation ...