Using imperfect advance demand information in lost-sales inventory systems with the option of returning inventory
| Autor: | Tarkan Tan, Rommert Dekker, Gjjan Geert-Jan van Houtum, Engin Topan |
|---|---|
| Přispěvatelé: | Econometrics, Business Intelligence, Industrial Engineering & Business Information Systems, Operations Planning Acc. & Control |
| Jazyk: | angličtina |
| Rok vydání: | 2018 |
| Předmět: |
0209 industrial biotechnology
Lost sales Value of information 021103 operations research Actuarial science Operations research returning excess inventory to upstream Inventory 0211 other engineering and technologies Perfect information Information quality 02 engineering and technology Inventory system Industrial and Manufacturing Engineering Imperfect advance demand information 020901 industrial engineering & automation Markov decision process (MDP) Spare part Economics Lost-sales Imperfect Stock (geology) |
| Zdroj: | IISE Transactions, 50, 246-264. Taylor & Francis Ltd IISE Transactions, 50(3), 246-264. Taylor & Francis IISE Transactions, 50(3), 246-264. Informa UK Limited |
| ISSN: | 0740-817X 2472-5854 |
| DOI: | 10.1080/24725854.2017.1403060 |
| Popis: | Motivated by real-life applications, we consider an inventory system where it is possible to collect information about the quantity and timing of future demand in advance. However, this Advance Demand Information (ADI) is imperfect as (i) it may turn out to be false; (ii) a time interval is provided for the demand occurrences rather than its exact time; and (iii) there are still customer demand occurrences for which ADI cannot be provided. To make best use of imperfect information and integrate it with inventory supply decisions, we allow for returning excess stock built up due to imperfections to the upstream supplier and we propose a lost-sales inventory model with a general representation of imperfect ADI. A partial characterization of the optimal ordering and return policy is provided. Through an extensive numerical study, we investigate the value of ADI and factors that affect that value. We show that using imperfect ADI can yield substantial savings, the amount of savings being sensitive to the quality of information; the benefit of the ADI increases considerably if the excess stock can be returned. We apply our model to a spare parts case. The value of imperfect ADI turns out to be significant. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|