Optimal Level of Product Availability
Chapter 13 of Chopra
1
utdallas.edu/~met
Outline
Determining optimal level of product availability
Single order in a season
Continuously stocked items
Ordering under capacity constraints
Levers to improve supply cha
EOQ Assumptions
1. Instantaneous production.
EPL model relaxes this one
lags can be added to EOQ or other models
2. Immediate delivery.
3. Deterministic demand.
newsvendor and (Q,r) relax this one
WW model relaxes this one
4. Constant demand.
5. Known fix
Integer Programming
Outline
Mathematical programming paradigm
Linear Programming
Integer Programming
Integer Programming
Example
Unimodularity LP -> IP
Theorem
Conclusion
Special Linear Programming with Integer Solutions
Assignment Problem
Network
Chapter 12: Inventory Control
Purposes of Inventory
1. To maintain independence of
operations
2. To meet variation in product
demand
3. To allow flexibility in production
scheduling
4. To provide a safeguard for variation
in raw material delivery time
5.
Optimal Level of Product Availability
Chapter 12 of Chopra
1
utdallas.edu/~met
Outline
Determining optimal level of product availability
Single order in a season
Continuously stocked items
Ordering under capacity constraints
Levers to improve supply cha
Clamshell
Beach
Press
CBP WP 57-23
THE NEWSVENDOR PROBLEM
Arthur V. Hill
The John and Nancy Lindahl Professor, Carlson School of Management, University of Minnesota,
Supply Chain & Operations Department, 321 19th Avenue South, Minneapolis, MN 55455-0413.
* We aren't endorsed by this school
