Mathematical Modeling - Business, Production & Operations Management
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Overview
Most books on inventory theory use the item approach to determine stock levels, ignoring the impact of unit cost, echelon, and indenture. Optimal Inventory Modeling of Systems is the first book to take the system approach to inventory modeling. It develops the techniques by which a manager can achieve a desired system availability using the smallest expenditure of resources. Or, if the manager has constrained resources, he can maximize system availability by allocating them optimally across items and locations. Offering a solution to the multi-echelon problem, this book shows readers how to jointly optimize the stock levels at operating sites and the supporting depot. That solution is then extended to the multi-indenture problem, where demand for an item may result in demand for lower indenture repair parts. The optimal approach in this book has led to dramatic reductions in the resources required to operate many systems - fleets of aircraft, ships, telecommunications networks, electric utilities, computer systems, space shuttles and orbiting vehicles. Some case histories are included. The material in this book has been developed over 30 years. While most of it has appeared in professional journals, it has never been collected into a book. The research for Space Station Freedom is so recent that it has not yet appeared elsewhere. This is of particular interest because it includes modeling of redundancy at the system and item levels. Optimal Inventory Modeling of Systems includes recent results in demand prediction for cases where demand is Poisson with a mean that changes over time. Models are developed for cannibalization, where "holes" in a fleet of end-items are consolidated, and for wear-out items. The book contains a careful development of the theory suitable for a graduate course in operations research. Because the mathematical proofs are mostly in the appendices and problems, the body of the text is also accessible to managers and others with less mathemEditorials
Booknews
Uses a system approach--rather than the item approach--to designing an inventory control program, mainly for use in military contexts. Offers solutions to the multi-echelon problem, showing how to optimize the stock levels at operating sites and the supporting depot; and the multi-indenture problem, in which demand for an item may result in demand for lower indenture repair parts. Accessible to managers with little mathematics background, but primarily for logisticians and engineers Annotation c. Book News, Inc., Portland, OR (booknews.com)Book Details
Published
September 28, 1992
Publisher
John Wiley & Sons
Pages
304
Format
Hardcover
ISBN
9780471558385