hw
AKA-Pro
9-CoordinatedReplenishment.pptxCoordinated Replenishment
MGT 509
Single Stocking Point
Items sharing common supplier, transport mode, or production facility
Advantages
Savings on unit purchase costs
Savings on unit transportation costs
Savings on ordering/setup costs
Ease of scheduling
Disadvantages
Possible increase in average inventory levels
Increase in system control costs
Reduced flexibility
Deterministic Scenario
Assumptions for standard EOQ apply here too
STEP 1: Number the items such that is smallest for item 1. And set
STEP 2: Calculate rounded to nearest integer >0
STEP 3: Calculate
STEP 4: Determine
Deterministic Scenario with discounts
STEP 1: Repeat steps in previous slide. But use
STEP 2: IF use the found in Step 1. ELSE
STEP 3: Compare TRCs
(Keep the from Step 1.)
Probabilistic Scenario
How often do we review the status of items?
When do we reorder the group?
How much do we reorder?
How do we allocate the total order among individual items?
(S,c,s) = Can-Order Systems
Periodic Review
Probabilistic Scenario
Periodic Review System
Outperforms (S,c,s) and is easier to compute
STEP 1: Compute EOQ and Time Supply for each item using only
STEP 2: Choose the item with the smallest time supply and denote it item 1. Start increasing until . Include now and keep increasing the alphas until or Ts are equal or total alpha = 1
STEP 3: Round all other Ts to powers-of-two multiples of base period
Probabilistic Scenario with discounts
Miltenburg Algorithm
Figure 10.3
Application of Miltenburg’s algorithm
For periodic review
STEP 1: Calculate ASPRC
STEP 2: Calculate ESPRC
STEP 3: IF ESPRC > ASPRC THEN place order ELSE wait until next review
To order: allocate the amount between 80% of and IP. If there is still room allocate remaining load based on share of demand rate in total demand
Capacitated Lot Sizing
Select Ti that produces minimum total relevant cost per unit time
Each item required in the period under consideration has its
For the item with largest increase to
Continue until there is insufficient capacity to increase and of the by unity or until all are negative.
is the amount of resource required per unit of item i.
