| Author | Liliana E. Y. Hartanto |
| Call Number | AIT Thesis no. ISE-00-13 |
| Subject(s) | Inventory control--Mathematical models
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| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Advanced Technologies |
| Publisher | Asian Institute of Technology |
| Series Statement | Thesis ; no. ISE-00-13 |
| Abstract | Problem of inventory position control appears a lot in many real life situations, such as inventory position control of materials in warehouses, goods in stores, cash dispensers. This problem is difficult to solve, because we cannot predict exact number for how many customers will arrive and when they will arrive. Hence it turns to be stochastic problem, and we can only give an approximation of the real value. This study is about inventory position control, having Poisson process generate the customer's arrival. On hand inventory is taken as inventory position. Lead-time of procurement is zero. There are two situations being considered that may happen. One is the situation, when the inventory position does not reach zero until the cycle ends. The other is the situation, when the inventory position reaches zero before the cycle ends. In later case, an emergency replenishment is triggered. However, there is only one emergency replenishment is allowed in a cycle. Hence, under the situations when emergency replenishment is triggered, there are two situations that may happen. They are the situation when lost sales happen and the one when no lost sales happens. Hence, the overall objective of this study is to analyze the inventory control system with one emergency replenishment. A mathematical model describing the above situations, using Expected Path approach is developed. There are two decision variables are considered. One is order-up-to level (So), and the other one is cycle length (T). Another mathematical model, using State Probability approach, is taken from Nico and Nagarur model [12]. In this model, costs functions are developed. Optimization of the model using Expected Path approach is done, and the optimal decision variables are obtained. The performance measure used is the average cost per unit time. The values of parameters used to evaluate the performance of each model are varied for both So and T. To help calculate the performance measure, a program using VBA software embedded in MS Excel has been developed for Expected Path approach. By using synthetic data, comparisons and analysis of both models are conducted. |
| Year | 2000 |
| Corresponding Series Added Entry | Asian Institute of Technology. Thesis ; no. ISE-00-13 |
| Type | Thesis |
| School | School of Advanced Technologies (SAT) |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Systems Engineering (ISE) |
| Chairperson(s) | Nagarur, Nagendra N.; |
| Examination Committee(s) | Anulark Pinnoi;Khang, Do Ba; |
| Scholarship Donor(s) | H. M. The King of Thailand; |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2000 |