By Paolo Brandimarte
Special creation to distribution logistics that specializes in either quantitative modeling and sensible company issuesIntroduction to Distribution Logistics offers an entire and balanced remedy of distribution logistics by means of overlaying either purposes and the necessary theoretical historical past, as a result extending its achieve to practitioners and scholars in a variety of disciplines resembling administration, engineering, arithmetic, and information. The authors emphasize the range and complexity of concerns and sub-problems surrounding distribution logistics in addition to the restrictions and scope of applicability of the proposed quantitative instruments. during the ebook, readers are supplied with the quantitative techniques had to deal with real-life administration difficulties, and parts of research include:Supply chain managementNetwork layout and transportationDemand forecastingInventory keep watch over in unmarried- and multi-echelon systemsIncentives within the offer chainVehicle routingComplete with huge appendices on likelihood and statistics in addition to mathematical programming, advent to Distribution Logistics is a priceless textual content for distribution logistics classes at either the complex undergraduate and starting graduate degrees in various disciplines, and past wisdom of creation making plans isn't really assumed. The ebook additionally serves as an invaluable reference for practitioners within the fields of utilized arithmetic and facts, production engineering, enterprise administration, and operations examine. The book's similar website comprises extra sections and numerical illustrations.
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Extra resources for Introduction to Distribution Logistics (Statistics in Practice)
This also implies that many specific components32 would be thrown away (according to our assumptions concerning the limited time window for sales and the lack of any salvage value of unused components). The stochastic model. instead, increases production of specific component c3, which is needed to support assembly and sales of A l : even a small amount of component c4 is produced, in order to support the least profitable end item A2, which helps in using common components when sales are low for other end items.
The customer should be allowed to customize her order in a n easy and flexible way. 23Central limit theorem may justify such an assumption in the case of consumer goods: see page 470. 1). 9 on page 456. ~ c ~ DEALlNG WlTH UNCERTAlNTY 29 Fig. 8 Calculating safety stock based on lead-time demand uncertainty. parts. with respect to the EOQ model: hence. if we set the ordw quantity according to the EOQ rnode12j and WT'Cdisregard variable purchasiiig cosi . 2) becomes JYe should also mention that in this expression vie are not consideriiig stockout costs.
In order to understand why we might need some inventory. a good starting point is the classical EOQ model. 1 A classical model: Economic order quantity In this section we outline a sort of archetypal model for inventory rnanagenient. t'he Economic Order Quantit'y (EOQ) model. Our purpose is just to illustrate how fixed ordering cost,s affect the need for some stock as well as t o lay clown some background which will be also used in chapter 2. Hence, the analysis is rather superficial. 2. Consider a distributor selling a good with a rather regular demarld pattern.