Inventory Control and Management

Inventory Control and Management 

Управление и контроль запасов

 

Instructor:

Andrey V. Zyatchin, Can.Sc., Senior Lecturer, Department of Operations Management, Graduate School of Management, St Petersburg University

Workload:

6,0 ECTS

Contact hours: 45 

Prerequisites:

Probability theory, Statistics, Operations research, Logistics and Supply Chain Management

Goals and objectives:

Inventory control and management (ICM) being a part of logistics management is in general about specifying the size and placement of stocked goods. It is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods. The scope of ICM also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, returns and defective goods and demand forecasting. Balancing these competing requirements leads to optimal inventory levels, which is an on-going process as the business needs shift and react to the wider environment. The goal of the course is to introduce students to the formulation, analysis and using of mathematical models and optimization technique in inventory system. 

Course Content:

Topic 1. Foundations of inventory management 
Сhapter 1.1 Introduction to inventory management 
Сhapter 1.2 Classification of inventory management models 
Сhapter 1.3 q and p systems 
Сhapter 1.4 АВС, XYZ, VED, FNSD analysis 
Topic 2. Deterministic inventory management models 
Сhapter 2.1 The economic order quantity model 
Сhapter 2.2 The economic order quantity model with quantity discount 
Сhapter 2.3 Backorders 
Сhapter 2.4 Networks in inventory management. Vehicle routing problem, the shortest path and the maximum flow problem 
Topic 3. Dynamic models in inventory management Time-varying demands 
Сhapter 3.1 Classification of dynamic models in inventory management 
Сhapter 3.2 The dynamic economic lot size model 
Сhapter 3.3 Network representation, heuristic and optimal solution to the dynamic economic lot size model
Topic 4. Inventory management models under uncertainty 
Сhapter 4.1 Classification of inventory management models under uncertainty Сhapter 4.2 Newspaper boy problem 
Сhapter 4.3 Buffer stock 
Сhapter 4.4 Inventory model with uncertainty in demand and lead-time 
Сhapter 4.5 ABC analysis of inventory 

Сhapter 4.6 Inventory within supply chain management 

Teaching Methods:

Lectures, group projects, cases, quantitative optimization models and their realization in MS Excel, individual and group presentations 

Course Reading:

Compulsory literature list:
• Davis R.A. 2013 Demand-Driven Inventory Optimization and Replenishment: Creating a More Efficient Supply Chain, John Wiley & Sons (available on Ebrary Academic Complete)
Supplementary literature list:
• Abuhilal, L., Rabadi, G. and Sousa-Poza, A. (2006). Supply Chain Inventory Control: A Comparison Among JIT, MRP, and MRP With Information Sharing Using Simulation // Engineering Management Journal, Vol. 18 Issue 2, p. 51-57 
• Axsäter, S. (2006) Inventory Control, Springer, New York (2nd edition). 
• Clarke G., Wright J.W. (1964). Scheduling of vehicles from a central depot to a number of delivery points // Operations Research, vol. 12 no. 4 pp. 568-581 
• Graves S., Rinnooy A., and P. Zipkin (eds.) (1993) Logistics of Production and Inventory. Handbooks in Operations Research and Management Science, Volume 4, North-Holland, Amsterdam. 
• Janssens, G., Ramaekers, K., (2011). A linear programming formulation for an inventory management decision problem with a service constraint. // Expert Systems with Applications, Vol. 38 Issue 7, p 7929-7934. 
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