Multi-item two-ehelon inventory-distribution system design: a case study

Bulur, Hakan
In this study, inventoryاdistribution system of a company operating in Fast Moving Consumer Goods (FMCG) industry is analyzed. The system is a multiاitem, two-echelon, divergent inventoryاdistribution system with transportation constraints. The warehouses in the system are nonidentical and all of the warehouses are allowed to hold stock. The goal is to achive target customer service levels. Throughout the system, inventory is controlled by echelon stock periodic review (R, S) order-up-to level policy. The problem is the determination of inventory control parameters in the system and effective replenishment of the inventories of many items at regional warehouses under transportation constraints. An approach consisting of three modules operating in a hierarchy is developed to manage the system. The approach calculates the inventory control parameters of the items (order-up-to levels at the regional warehouses and stock allocation fractions); determines the replenishment periods of the items with the objective of balancing the vehicle requirements among periods and performs the daily replenishment of inventories minimizing the maximum deviation from the inventory policy under transportation constraints. A heuristic approach is adapted from the literature for the inventory control parameter determination part of the approach; an IP model is formulated for the replenishment period scheduling part and a MIP model is constructed for the replenishment process. The proposed approach is simulated with retrospective data of the company and compared with the existing system in the company, in terms of the performance measures defined. Satisfactory results are obtained with the proposed system.


Multi-item inventory-routing problem for an FMCG company
Zerman, Erel; Kırca, Ömer; Department of Industrial Engineering (2007)
In this study, inventoryrouting system of a company operating in Fast Moving Consumer Goods (FMCG) industry is analyzed. The company has decided to redesign distribution system by locating regional warehouses between production plants and customers. The warehouses in the system are all allowed to hold stock without any capacity restriction. The customers are replenished by the warehouse to which they have been assigned. Customer stocks are continuously monitored by the warehouse and deliveries are to be sch...
Measuring maturity level of e-transforming organizations
Ergin, Merve Hande; Arifoğlu, Ali; Department of Information Systems (2006)
With the opportunities to expand from a local to a global market, organizations need to change with the development of information systems and communication technologies. The electronically transforming organizations' success depends not only to hardware/software usage but also transformation in the well-defined business processes. Successful transformation from "organization" to "e-organization" by innovative processes requires strategic and cultural changes as a result of changes in the leadership. In thi...
Analyses of factors affecting acceptance of homecare technologies by patients with chronic diseases
Kutlay, Ayşegül; Mumcuoğlu, Ünal Erkan; Department of Medical Informatics (2012)
In this study, the factors affecting the acceptance of mobile homecare system were examined. These factors were assessed by taking Unified Theory of Acceptance and Use of Technology (UTAUT) as a theoretical model. The main feature of this thesis (differing from the other studies in the literature) is that the user acceptance study model is analyzed on a system that is not realized yet. So, this study has two dfferent perspectives. The first one is the examination the results of UTAUT for a system in the des...
Evaluation and modeling of streamflow data: entropy method, autoregressive models with asymmetric innovations and artifical neural networks
Şarlak, Nermin; Şorman, Ali Ünal; Department of Civil Engineering (2005)
In the first part of this study, two entropy methods under different distribution assumptions are examined on a network of stream gauging stations located in Kizilirmak Basin to rank the stations according to their level of importance. The stations are ranked by using two different entropy methods under different distributions. Thus, showing the effect of the distribution type on both entropy methods is aimed. In the second part of this study, autoregressive models with asymmetric innovations and an artific...
Progressive obsolescence and product non-use in electrical kitchen appliances
Örsel İmir, Işık; Asatekin, Mehmet; Department of Industrial Design (2010)
The aim of this study is to find out the reasons of progressive obsolescence and product non-use in small kitchen appliances and to examine the relation between the consumer’s pre-purchase expectations and post-purchase experiences with these products to understand the deficiencies of kitchen appliances which cause consumer to stop using them. The reasons of progressive obsolescence and product non-use might be informative for further studies on this subject. Throughout the study, the general issues of need...
Citation Formats
H. Bulur, “Multi-item two-ehelon inventory-distribution system design: a case study,” M.S. - Master of Science, Middle East Technical University, 2005.