A linear programming formulation for an inventory management decision problem with a service constraint

Janssens, Gerrit K.; Ramaekers, Katrien

doi:10.1016/j.eswa.2010.12.009

Cited by 13 publications

(13 citation statements)

References 9 publications

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“…The problems related with lean inventory, such as stocking out and the additional expenses from more scheduled deliveries could be causing some retailers to halt using lean practices. Some companies hold additional safety stocks and audits to alleviate the issue of stock-out and demand uncertainty [14]; [15]. Results of this research will underline to retailer's specific customer and profit-related problems associated with lean practices and identify possible solutions to alleviate the negative effects of stock-out.…”

Section: Objective Of the Studymentioning

confidence: 93%

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Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior

Ali¹

2019

IJTET

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The objective of this exploratory study was to examine stock-outs as an event and document their effects on changes in customer attitudes. A study containing both open-ended and close-ended elements was validated through a pilot study and used to collect data from 100 randomly selected participants spending at Shewa Shopping Center in Addis Ababa. The finding indicated that repeated stock-out experiences reduced customers' loyalty to brand and retailer and caused customers to leave both retailers and brand. Participants indicated that stock-out effects can be shielded through improved inventory management and better customer service. Explicit recommendations involved apology, price discounts and free delivery. The finding of this study will enable retailers to gain deeper considerate of how stock-out affects customers shopping experiences and loyalty, and offer alleviation measures to improve both. In addition, the finding will provide a positive change to both customers and retailers, where shoppers will enjoy pleasant shopping experiences and retailers can maintain their competitive advantage via loyalty of their customer.

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Section: Objective Of the Studymentioning

confidence: 93%

“…Customers who experience stock-out frequently go to a competitor to purchase a desired product, which causes a loss of retailer profits. Janssens [14] find out that stock-outs negatively affect profits in both the short and long run for retailers.…”

Section: Objective Of the Studymentioning

confidence: 99%

Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior

Ali¹

2019

IJTET

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“…In the following, only probabilistic models are taken into account by means of the Cycle Service Level ( CSL ), which is the probability of not backordering during a certain time horizon. Reader can refer to Janssens and Ramaekers () for a definition of other service‐oriented measures. Without loss of generality, the most common inventory control systems belonging to the aforementioned continuous and periodic review are briefly presented below.…”

Section: Frameworkmentioning

confidence: 99%

“…Reader can refer to Janssens and Ramaekers (2011) for a definition of other service-oriented measures. Without loss of generality, the most common inventory control systems belonging to the aforementioned continuous and periodic review are briefly presented below.…”

Section: Step 4: Inventory Control Systemmentioning

confidence: 99%

A multicriteria framework for inventory classification and control with application to intermittent demand

Lolli

Ishizaka

Gamberini

et al. 2017

Multi Criteria Decision Anal

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Several papers have studied inventory classification in order to group items with a view to facilitating their management. The generated classes are then coupled with the specific reorder policies composing the overall inventory control system. However, the effectiveness of inventory classification and control system is strictly interrelated. That is to say, different classification approaches could show different performance if applied to a different set of reorder policies, and vice versa. Furthermore, when the cost structure is subjected to uncertainty, a pure cost‐based analysis of the inventory control system could be corrupted. This paper presents a multicriteria framework for the concurrent selection of the item classification approach and the inventory control system through a discrete‐event simulation approach. The key performance indicators provided by the simulator (i.e., average holding value, average number of backorders, and average number of emitted orders) are indicative of the multidimensional effectiveness of the adopted inventory control system when coupled with a specific classification approach. By this way, a multicriteria problem arises, where the alternatives are given by exhaustively coupling the item classes, which are generated by different classification approaches, with the reorder policies composing the inventory system. An analytical hierarchy process is then used for selecting the best alternative, as well as for evaluating the effect of the weights assigned to the key performance indicators through a sensitivity analysis. This approach has been validated in a real case study with a company operating in the field of electrical resistor manufacturing, with a view of facilitating the management of items showing intermittent demand.

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“…Furthermore, Käki et al [5] show the impact of the demand distribution shape on replenishment, based on experiments with qualitative shape characteristics (normal, positively skewed, negatively skewed, and bimodal). In Janssens and Ramaekers' research [6], an approach has been developed to obtain the reorder point based on the knowledge of the range, mean and variance of the demand distribution only, which is the same information as required for the use of the normal distribution (as many times used in commercial software).…”

Section: Introductionmentioning

confidence: 99%

Analytical Solution of Safety Stock Determination in Case of Uncertain Unimodal Lead-Time Demand

Janssens

Verdonck

Ramaekers

2018

ITMS

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As companies state that a delivery service is important to their customers, an out-of-stock is considered harmful and therefore they keep safety stock in case of uncertain demand. For decision making on the level of safety stock a complete formulation of the distributional form of the demand during lead time is required. In practice, this information may not be available. In such a case, only partial information on the distribution might be available, such as the range, the mode, the mean or the variance. Given a value for a service performance measure, the decision maker, in this case, is not confronted with a single value for the safety stock but rather with an interval. The present research shows how upper and lower bounds of the safety stock are obtained in an analytical way, given a pre-specified service level using a service performance measure, called ‘expected number of units short’. The technique is also illustrated and compared within the framework of the research.

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A linear programming formulation for an inventory management decision problem with a service constraint

Cited by 13 publications

References 9 publications

Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior

Assessment of the Effect of out-of-Stock on Customers Purchasing Behavior

A multicriteria framework for inventory classification and control with application to intermittent demand

Analytical Solution of Safety Stock Determination in Case of Uncertain Unimodal Lead-Time Demand

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