The virtual warehousing concept

Landers, Thomas L.; Cole, Michael H.; Walker, Bryan; Kirk, Randall W

doi:10.1016/s1366-5545(99)00024-1

Cited by 53 publications

(26 citation statements)

References 0 publications

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“…Research into virtual inventory management, variously referred to as demand allocation, inventory pooling, inventory consolidation, portfolio effect, and consolidation effect, has been around in literature in several forms for quite some time (Landers et al, 2000;Ballou & Burnetas, 2003). The basic idea is that inventory increases as the standard deviation of either demand or lead time increases, and, as a result, companies may attempt to reduce inherent variation by pooling it.…”

Section: Introductionmentioning

confidence: 99%

The impact of different demand allocation rules on total stock levels

Wanke

2010

Pesqui. Oper.

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This manuscript compares two different rules for allocating demands to serving facilities and their impact on total stock levels: the one proposed by Tyagi & Das (1998) and the cross filling practice. The EOQ and the ROP methods are used for setting cycle and safety stocks. Its is demonstrated that the minimization of the consolidated inventory levels within these rules leads to different allocation policies, frequently adopted by companies: one single facility sharing, dedicated facilities and full decentralization. Sensitivity analyses are conducted to identify the most relevant variables accountable for the differences in total stock levels among these three policies. Results suggest different benefit opportunities that may favor one policy to the detriment of the others. A framework synthesizing the findings is presented, so as to help in decision making. Potential impacts in terms of service levels and distribution costs are also evaluated qualitatively.Keywords: allocation rules; stock levels; inventory portfolios. ResumoEsse artigo compara duas diferentes regras para alocação da demanda às instalações de serviço e seus impactos nos níveis totais de estoque: a regra proposta por Tyagi & Das (1998) e a prática de transferência entre instalações. Os métodos do lote econômico de compras e do ponto de pedido são usados para determinação dos níveis de estoque de ciclo e de segurança. É demonstrado que a minimização dos níveis agregados de estoque nessas regras leva a diferentes políticas de alocação freqüentemente adotadas pelas empresas: compartilhamento de uma única instalação de serviço, instalações de serviço dedicadas e descentralização total do atendimento. Análises de sensibilidade são conduzidas para identificar as variáveis mais relevantes, responsáveis pela diferença nos níveis totais de estoque entre essas três políticas. Os resultados sugerem diferentes oportunidades que podem favorecer uma dada política em detrimento das outras. Um quadro conceitual sintetizando os achados é apresentado, de modo a auxiliar na tomada de decisão. Os impactos potenciais em termos de níveis de serviço e dos custos de distribuição também são avaliados em termos qualitativos.Palavras-chave: regras de alocação; níveis de estoque; portifólio de estoques.

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Section: Introductionmentioning

confidence: 99%

The impact of different demand allocation rules on total stock levels

Wanke

2010

Pesqui. Oper.

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“…Additionally, the VW is dependent on information technologies and real-time decision algorithms to provide operating efficiencies and global inventory visibility comparable to those achieved in a single-location, world-class warehouse [21]. Most previous research considered a VW operated by the manufacturer, focusing on the distribution between the manufacturer and customer for better customer service [21,22]. The frequent changes in customer orders led to an insufficient inventory, which meant that the available inventory at the manufacturing site was lower than the customer demand.…”

Section: Virtual Warehousementioning

confidence: 99%

“…Thus, the inventory at different or remote manufacturing sites is tagged for its final customer (i.e., destination) in the VW. Landers et al [22] proposed a VW model for the field repair service of a business telephone system. Using the VW model, they argued that the productivity and utilization of skilled field technicians were improved.…”

Section: Virtual Warehousementioning

confidence: 99%

The Economic Effect of Virtual Warehouse-Based Inventory Information Sharing for Sustainable Supplier Management

Jung

Jeong

2018

Sustainability

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Abstract:With the rapid development of information and communication technologies, inventory information sharing between a manufacturer and its suppliers is becoming easier than ever. In line with this trend, we focus on the virtual warehouse where only inventory information on all of the material provided by the suppliers can be stored and shared. Unlike traditional supplier management, the manufacturer constructs and operates this virtual warehouse to check the inventory levels of all the required material at the same time, but each supplier can access only the information about its inventory. This virtual warehouse-based approach can foster a tight relationship between the manufacturer and its suppliers and can handle suppliers as a single company without a large investment in constructing a physical warehouse. The virtual warehouse-based approach seems to be more economically sustainable. To investigate the effect of inventory information sharing via the virtual warehouse, we developed and analyzed a system dynamics-based simulation model. The experiment results show that sharing the inventory information of the suppliers via the virtual warehouse can help manufacturers to achieve better operational performance on several important measures, such as the reduction of finished goods inventory, parts purchasing quantity, degree of backlogs, and total cost.

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“…(3) The information sharing center only provides information services, no inventory; The manufacturer does not have stock. (4) In this paper, the model discuss the cost to be optimized. (5) In this paper, all of the customers discussed are supplied by the same manufacturer and focus on the allocation among customers, in order to facilitate the calculation of time.…”

Section: Conditional Assumptionsmentioning

confidence: 99%

Research on Inventory and Distribution Collaborative Optimization of Building Materials Supply Chain

Ma¹,

Wang²,

Liu³

et al. 2017

Proceedings of the 2017 International Conference on Mechanical, Electronic, Control and Automation Engineering (MECAE 2017)

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Abstract. In this paper, we discuss about the three logistics systems which consist of one manufacturer, one dealer and many customers. It is based on the particularity of the construction material consumption being slowly, we study the inventory and distribution coordination optimization problem based on the virtual inventory management. First of all, under the premise of analyzing the cost constitution of building material supply chain, we build a collaborative optimization model of inventory and distribution based on the minimum cost of the whole supply chain, and solve it by genetic algorithm. At last, by simulating the example whit Mat lab Software, we finish verifying the correctness and validity of the model, and get the minimum cost of the supply chain and the corresponding allocation scheme.

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The virtual warehousing concept

Cited by 53 publications

References 0 publications

The impact of different demand allocation rules on total stock levels

The impact of different demand allocation rules on total stock levels

The Economic Effect of Virtual Warehouse-Based Inventory Information Sharing for Sustainable Supplier Management

Research on Inventory and Distribution Collaborative Optimization of Building Materials Supply Chain

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