Developing a Model for Optimizing Inventory of Repairable Items at Single Operating Base
Le, Tin (2016)
Jyväskylän ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016060111181
https://urn.fi/URN:NBN:fi:amk-2016060111181
Tiivistelmä
The use of EOQ model in inventory management is popular. However, EOQ models has many disadvantages, especially, when the model is applied to manage repairable items. In order to deal with high-cost and repairable items, Craig C. Sherbrooke introduced a model in his book “Optimal Inventory Modeling of Systems: Multi-Echelon Techniques”.
The research focus is to implement and develop a program to execute the single-site in-ventory model for repairable items. The model helps to significantly increase the availabil-ity of the system and decrease the inventory cost, in comparison to, the model for con-sumable items using EOQ (Economic Order Quantity) method.
The optimized stock level is calculated by using two different techniques, including: Mar-ginal analysis technique in Excel and special algorithm in Python. After that, the result is compared to each other to validate the program.
Companies currently acquiring high tech or expensive systems can benefit from the re-search. The inventory model not only helps to reduce the inventory cost, but also in-creased the availability of the system. In addition, detailed guidelines for creating the model using Excel and Python is also a reference for companies who would like to apply this model to their operations.
The research focus is to implement and develop a program to execute the single-site in-ventory model for repairable items. The model helps to significantly increase the availabil-ity of the system and decrease the inventory cost, in comparison to, the model for con-sumable items using EOQ (Economic Order Quantity) method.
The optimized stock level is calculated by using two different techniques, including: Mar-ginal analysis technique in Excel and special algorithm in Python. After that, the result is compared to each other to validate the program.
Companies currently acquiring high tech or expensive systems can benefit from the re-search. The inventory model not only helps to reduce the inventory cost, but also in-creased the availability of the system. In addition, detailed guidelines for creating the model using Excel and Python is also a reference for companies who would like to apply this model to their operations.