A literature review on inventory modeling with reliability consideration

Abstract

Inventories are the materials stored either waiting for processing or experiencing processing and in some cases for future delivery. Inventories are treated both as blessings and evil. As they are like money placed in a drawer, assets tied up in investments, incurring costs for the care of the stored material and also subject to spoilage and obsolescence there have been a spate of programs developed by industries, all aimed at reducing inventory levels and increasing efficiency on the shop floor. Nevertheless, they do have positive purposes such as stable source of input required for production, less replenishment and may reduce ordering costs because of economies of scale. Finished goods inventories provide for better customer service. So formulating a suitable inventory model is one of the major concerns for an industry. Again considering reliability of any process is an important trend in the current research activities. Inventory models could be both deterministic and probabilistic and both of which must account for the reliability of the associated production process. This paper discusses the major works in the field of inventory modeling driven by reliability considerations, which ranges from the very beginning to latest works just published.

Inventory model with climate change impacts and green sustainability cost parameters

“…Inventory models are also framed with the objective of increasing the reliability of the production system. [10] have presented a review of reliability inventory models in which the context of reliability was referred to product production with minimum defects and avoidance of deterioration. The reliability inventory models emphasized incorporation of quality cost parameters in production inventory model.…”

A Discrete Event Simulation Analysis of the Bullwhip Effect in a Multi-Product and Multi-Echelon Supply Chain of Fast Moving Consumer Goods

“…The ROP of the retailer is calculated according to equation (1). After satisfying the demand, the inventory is tracked to check if its level is smaller than or equal to the reorder point.…”

A constructive algorithm to maximize the useful life of a mechanical system subjected to ageing, with non-resuppliable spares parts

“…So, holding high inventories of spare parts is not a viable solution, as it would inevitably lead to unsustainable holding costs. A tradeoff, between the system's reliability and costs, must be found, and the optimization of this issue has attracted much scientific interest, as testified by the interesting literature reviews by Kennedy et al (2002), Ahmed and Sultana (2013), Khanlarzade et al (2014) and .…”