The deal for industrial companies is to satisfy their customers with the best quality, the most reliable lead times, and the lowest costs. One of the keys to achieve it is in the inventory control in the Supply Chain. Moreover, it is mandatory to possess necessary components in order to produce the requested products by the due date. But, as the components lead time is an unpredictable paramete...

Cell Formation (CF) is the initial step in the configuration of cell assembling frameworks. This paper proposes a new mathematical model for the CF problem considering aspects of production planning, namely inventory, backorder, and subcontracting. In this paper, for the first time, backorder is considered in cell formation problem. The main objective is to minimize the total fixed and variable...

We consider an infinite-horizon, periodic-review, single-item production/inventory system with random demand and back-ordering, where multiple set-ups are allowed in any period, and a separate fixed cost is associated for each set-up. Contrary to majority of the literature on this topic, we do not restrict the order quantities to be integer multiples of the exogenously-given batch size and inst...

Global offshoring has increased the need for transport of half-finished goods and components, along with finished goods. The auto-parts industry in Korea has also entered the global market as Korean car manufacturers have started to build overseas factories. Maintaining cost competitiveness by minimising total logistics costs will thus be a critical strategy for the industry. This research comp...

In multi-item inventory with very large number of items in retail sale stores, purchase dependency in demand amongst the items can be described by association rules mined from sale transaction data. With the knowledge of association rules, inventory replenishment policy can be designed which will result in low inventory cost and better profitability. The relevant inventory costs include the cos...

Production costs in general, and workforce and inventory costs in particular, constitute a large fraction of the operating costs of many manufacturing plants. We introduce cooperative aggregate production planning as a way to decrease these costs. That is, when production planning of two or more facilities (plants) is integrated, they can interchange workforce and products inventory; thus, thei...

We study the location-inventory model as introduced by Teo et al. (2001) to analyze the impact of consolidation of distribution centers on facility and inventory costs. We extend their result on profitability of consolidation. We associate a cooperative game with each location-inventory situation and prove that this game has a nonempty core for identical and independent demand processes. This i...

In continuous review models with a fixed delivery lag T, the state of the system is conveniently described by the net inventory position = (inventory on hand) plus (outstanding orders), in spite of most cost components depending on the actual inventory on hand. To relate these two inventory concepts one observes that the distribution of the inventory on hand at time t + T is determined by the i...

Consolidating orders in inventory management increases order size, exploits economy of scale, and potentially lowers costs. But it is not always apparent how to divide up the resulting lower costs. The analysis of cost allocation in different inventory settings has a name and is now referred to as Inventory Games. This work examines collaborative procurement for the EOQ model for multiple items...

This paper proposes tools which will be used to optimize multi-level assembly under lead time uncertainty. One type of finished products and several types of components are considered. We suppose that each component has a fixed unit inventory cost and the finished product has backlogging and inventory holding costs per unit of time. The lead times of components are discrete random variables, an...