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International Journal of Inventory Research (4 papers in press)
Inventory model with stochastic demand, and no backorders: separate vs. joint cost minimisations by Samih Antoine Azar Abstract: This paper develops an inventory model with stochastic demand, but no backorders. Three different ways to find the minimum cost are chosen. The first two involve minimising the sum of carrying cost and ordering cost separately from the sum of safety stock cost, and underage cost. The third way is to optimise the sum of the four individual costs jointly. The paper begins by comparing the subtotals. One notable result is that the two subtotal costs, and the grand total cost are immaterially different for the three ways. However, if one scrutinises the four individual costs there are significant disparities. For example, the carrying cost is much higher for the third optimisation method relative to the first two, but the ordering cost is much lower. Therefore, each one of the four individual costs should be closely monitored, not only the subtotals or the grand total. Keywords: inventory model; stochastic demand; no backorders; cost minimisation; separate vs. joint optimisation; sensitivity analysis. DOI: 10.1504/IJIR.2022.10044822
Priority model for critical success factors in reverse flow inventory management by Marcele Elisa Fontana, Raphaela Vidal, Pedro Carmona Marques, Wesley Douglas Oliveira Silva Abstract: Reverse logistics is gaining prominence in a global, economic, social, and political context due to the increasing number of disposable products, a higher environmental concern, and the pursuit of competitive advantage. Thus, reverse flow inventory management is necessary for efficient operational control. However, many organisations are not able to identify and manage all their critical success factors (CSF) simultaneously. Thus, this paper proposes an integrative decision model to identify and prioritise CSFs. This model combines Soft and Hard operation research methods. The priority model can aid DMs to think creatively about their values in messy situations and express them in a structured way, requiring less cognitive effort because it uses partial information in its elicitation procedure. A case study in a Brazilian steel company was conducted to demonstrate the applicability of the proposed model. This model was able to generate practical, managerial, environmental, and social results. Keywords: reverse supply chain; multimethodology; problem structured methods; elicitation procedure. DOI: 10.1504/IJIR.2022.10046119
Manufacturing inventory model with random demand and finite production rate under two level of trade credit finance by Om Prakash, Nipa Biswas Abstract: The main purpose of this paper is to investigate a probabilistic inventory model with finite production rate and continuous stochastic demand rate under two levels of trade credit policy. In this trade credit policy, supplier will offer a delay period to the retailer for payment and the retailer also extends the trade credit policy to his/her customer. The model is dominated by retailer and he can take a powerful decision. Therefore, the objective of manufacturing inventory system is the minimisation of overall production cost and to determine the retailers optimal replenishment decision policy. Some accessible theorems are developed to determine the optimal replenishment decisions for the retailer. Theorems on the conditional convexity of the production cost of system are proposed and proved. The optimal replenishment policy of the system can be easily determined with the help of two theorems and illustrated with the help of numerical examples. Keywords: production; probabilistic inventory; stochastic demand; trade credit. DOI: 10.1504/IJIR.2022.10047781
A cost-benefit comparison of build-to-order and hybrid build-to-order/build-to-stock assembly for automotive modules by Emrae Jung Abstract: Transition from mass production to mass customisation in automotive industry has been forcing vehicle manufacturers and their suppliers to find ways to cope with the new demanding environment through more flexible and efficient processes. Just-in-time delivery, modular design and assembly, synchronous production, build-to-order (BTO) and just-in-sequence delivery are some of the concepts that have been implemented in the automotive industry to be more efficient. Modularity has evolved as a concept enabling effective customisation by dividing products into smaller sub-assemblies and as a result, modular production is currently being applied by increasing number of vehicle and part manufacturers to manage the ever-changing orders of the industry. The objective of this study is to compare two different production strategies implemented by two different tier-1 module suppliers operating in automotive industry. One of the suppliers implements synchronous BTO assembly concept as it is widely used by tier-1 module suppliers while the other supplier prefers a hybrid approach. Both concepts were examined by evaluating operational cost of each one compared with the other and by considering benefit in terms of responsiveness offered in return. Keywords: modular assembly; synchronous production; build-to-order; BTO; build-to-stock; BTS; automotive module. DOI: 10.1504/IJIR.2022.10050460