Inventory Relocation Model by Considering Product Association Relationship in Industrial PC Industry
Date Issued
2009
Date
2009
Author(s)
Lee, Tsung-Ting
Abstract
Because global company manufactures and sells its products in different sites, it needs to construct a lot of distribution center in the demand region. The enterprise usually put some inventory in these distribution centers. It can avoid the shortage situation and satisfy customers’ uncertain and immediate demand. This study focuses on discussing how to allocate the inventory among these distribution centers. In the industrial computer industry, there are too many kinds of products and high demand variation. Therefore, the enterprise manufactures its product in the same site and allocates based on the sales amount of products due to lack of economic of scale. It allocates the products with high sales turnover in the distribution center and put products with low sales turnover in the manufacture warehouse. The goal of this study is to minimize the total inventory related costs and to discover the suitable inventory site related inventory policy by using the association rule. By taking a real industrial computer agent-Advanced Technology, this study plans to use association rule for clustering and decides the suitable products distribution sites by balancing its inventory-related costs. Comparing the original inventory policy and distribution site of case, it is found that this study can improve the original inventory costs. Moreover, it can reduce large holding costs and shortage costs.
Subjects
association rule
clustering
inventory relocation
Type
thesis
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