Multi-period Product Inventory Allocation Model for Industrial PC Considering Product Relationship
Date Issued
2009
Date
2009
Author(s)
Huang, Cheng-Wei
Abstract
Because the demand of the industrial PC industry is unstable, it is unable to achieve the level of the economies of scale. This phenomenon causes the industrial PC industry to manufacture centralized and sale globally. Since the industrial PC has a lot of products, it is unable to stock all products when considering the cost and benefit. Therefore, the issue of inventory allocation between factories and DCs is an important issue for a global enterprise. Generally speaking, the enterprise mostly stock the items based on its sales turnover. The product with high sales turnover stock near the customer, but the product with low turnover stock in factory.ecause the industrial PC is assembled by many kinds of parts, it has the certain relationship between parts and parts. When customer places an order, he frequently purchases relevant products. Originally, the enterprise hoped fulfills the order immediately by stocking the product near the customer. When relevant products stock separately among factory and DCs due to the cost issue, actually the customer needs to wait for the product stocking in the factory to ship to the DC site in order to meet the customer need.herefore, this research will construct a multi-period product inventory allocation model considering product relationship, by balancing switch costs, transportation costs and the holding costs. This research also analyzes how switch costs, replacement frequency and the difference of transportation costs between by air and by ocean influence the inventory allocation. Finally, the conclusions and suggestions are pointed.
Subjects
inventory allocation
group technology
similarity coefficient
switch cost
Type
thesis
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