demand switching criteria for multiple products: an inventory cost analysis author: ying-jiun hsieh...
TRANSCRIPT
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Demand switching criteria for multiple products: An inventory cost analysis
Author: Ying-Jiun HsiehStudent: Hong Kong, Chen
journal homepage: www.elsevier.com/locate/omega
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Abstract
• The problem of demand switching • How a firm can take advantage of the
risk-pooling effect to gain more profit.
• The profit increases as a result of higher profit margin or smaller demand variation and correlation.
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Abstract
• There are no relation between profit and switching rate
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1.Introduction and literature review
• Uncertainty of products’ demand is a common source of variability which often calls for additional attention in the decision making process regarding inventory( 庫存 ) and distribution systems
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Introduction and literature review
• when multiple products are considered• However…. None of the previous studies addressed the
specific problem we consider even though the risk-pooling effect was well documented in an abundant body of research
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1.Introduction and literature review
• Our questions of interest are not fully answered by existing literature….
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1.Introduction and literature review
• Our proposed demand switching models are then developed and analyzed
• The heuristic approach is proposed to find the optimal switching paths and calculate the corresponding switching rates
• We also discuss the assignment of switched demand in the case of limited switched demand
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2.Basic definitions and assumptions
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2.Basic definitions and assumptions
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3.The profit functions and assignment of the switched demand
• In this section, the profit function for FDS is developed. We also examine the assignment of the switched demand in each criterion.
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3.1. Properties of demand switching
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3.1. Properties of demand switching
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3.1. Properties of demand switching
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3.2. Assignment of limited switched demand
• how would one determine the optimal assignment (最適分配 )of the switched demand for a specific switching criterion(尺度 )?
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3.2. Assignment of limited switched demand
• In the numerical examples none of them can always guarantee to yield( 產生 ) a higher profit than the other two.
• The relative relationship depends on a number of parameters such as demand variation and correlation, etc.
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4. Numerical examples
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5. Conclusion