SERVICE LEVEL IN MODEL OF INVENTORY LOCATION WITH STOCHASTIC DEMAND
Journal Title: Archives of Transport - Year 2014, Vol 31, Issue 3
Abstract
In this paper we consider the influence of the safety factor on the decision of the inventory location. This decision is done based on the model which centralizes or decentralizes the safety stock. In this model we have to choose between the location of the inventory in the regional warehouses or the location in the central warehouse. The decision is made due to the minimizing the holding costs and the supply costs of the safety stock from the central warehouse to the customer. The main assumption is that the customers have the stochastic demands on the inventory items. Moreover, the customers’ demands have the known distribution with the known parameters. The complex analysis of the influences of possible probabilistic demands' distributions on the safety factors is conducted. The numerical computations for the safety factors used in the facility location model are also presented. In numerical examples we take into considerations the demands’ distributions the most often used in practice like the normal, the Poisson, the Gamma and the exponential distribution. Some graphs for the safety factors of these distributions are also drawn. Moreover for the mentioned demands’ distributions the model of the safety stock location depends on the specific factors. Among other things these factors are the mean and the variance of the demand, the number of the regional warehouses, the assumed service level, and some cost factors like the holding costs and the transportation costs. Some graphs which illustrated the dependence of the model elements on some listed before parameters are presented and their influence on the location decision is studied also.<br/><br/>
Authors and Affiliations
Milena Bieniek
Keywords
Related Articles
- EP ID EP69881
- DOI 10.5604/08669546.1146981
- Views 134
- Downloads 0
Designing and efficiency of database for simulation of processes in systems. Case study for the simulation of warehouse processes
The basis of each IT system is data exchange both between individual modules of program and between program and user. The number of exchanged data and the number of operations on the data, which should be performed, requ...
FINITE ELEMENT MODELING OF COMPOSITE CONCRETE-STEEL COLUMNS
This paper presents the numerical part of the research program on concrete-filled steel columns. Nonlinear, three dimensional FE analysis of axial compression, was conducted using the finite element program ABAQUS. The n...
The system of IT support for logistics in the rail transport
The paper presents the requirements, architecture and important features of a modern IT system of logistics for rail transport. The purpose of the system is to provide logistic support of transport issues relating to the...
INVESTIGATIONS OF GEOSYNTHETIC INTERLAYER BONDING IN ASPHALT LAYERS
The paper presents the results of an extensive investigation of asphalt concrete specimens with geosynthetic interlayer. The subject of this research is evaluation of influence of geosynthetics interlayer applied to bitu...
OPTIMIZATION OF UNIT LOAD FORMATION TAKING INTO ACCOUNT THE MASS OF PACKAGING UNITS
This article presents a mathematical formulation of the optimization problem of loading unit formation taking into account the mass of packaging units. Proposed model can be applied to optimize the arrangement of non-uni...