Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization

Autores
Achkar, Victoria Gabriela; Brunaud, Braulio B.; Pérez, Héctor Daniel; Musa, Rami; Mendez, Carlos Alberto; Grossmann, Ignacio E.
Año de publicación
2024
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
Multi-echelon inventory optimization (MEIO) plays a key role in a supply chain seeking to achieve specified customer service levels with a minimum capital in inventory. In this work, we propose a generalized MEIO model based on the Guaranteed Service approach to allocate safety stock levels across the network at the lowest holding cost. This model integrates several existing and some novel features that are usually present in pharmaceutical multi-echelon supply chains into a single model: review periods, manufacturing facilities, hybrid nodes (nodes with both internal and external demand), minimum order quantities (MOQ), and different service level performance indicators (fill rate and cycle service levels). We include a polynomial regression to approximate fill rates as a possible target measure to set safety stocks. To improve efficiency, we propose a nonlinear programming model to support decision making, which can be reformulated as a Quadratically Constrained Program (QCP), which leads to order of magnitude reductions in computational time. The performance of the model is evaluated by solving illustrative and real-world cases, and is validated with simulation.
Fil: Achkar, Victoria Gabriela. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; Argentina
Fil: Brunaud, Braulio B.. University of Carnegie Mellon; Estados Unidos
Fil: Pérez, Héctor Daniel. University of Carnegie Mellon; Estados Unidos
Fil: Musa, Rami. University of Carnegie Mellon; Estados Unidos
Fil: Mendez, Carlos Alberto. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; Argentina
Fil: Grossmann, Ignacio E.. University of Carnegie Mellon; Estados Unidos
Materia
Multi-echelon inventory optimization based on guaranteed service.
Quadratically Constrained formulation
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/245977
Acceder
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network_name_str CONICET Digital (CONICET)
spelling Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimizationAchkar, Victoria GabrielaBrunaud, Braulio B.Pérez, Héctor DanielMusa, RamiMendez, Carlos AlbertoGrossmann, Ignacio E.Multi-echelon inventory optimization based on guaranteed service.Quadratically Constrained formulationhttps://purl.org/becyt/ford/2.4https://purl.org/becyt/ford/2Multi-echelon inventory optimization (MEIO) plays a key role in a supply chain seeking to achieve specified customer service levels with a minimum capital in inventory. In this work, we propose a generalized MEIO model based on the Guaranteed Service approach to allocate safety stock levels across the network at the lowest holding cost. This model integrates several existing and some novel features that are usually present in pharmaceutical multi-echelon supply chains into a single model: review periods, manufacturing facilities, hybrid nodes (nodes with both internal and external demand), minimum order quantities (MOQ), and different service level performance indicators (fill rate and cycle service levels). We include a polynomial regression to approximate fill rates as a possible target measure to set safety stocks. To improve efficiency, we propose a nonlinear programming model to support decision making, which can be reformulated as a Quadratically Constrained Program (QCP), which leads to order of magnitude reductions in computational time. The performance of the model is evaluated by solving illustrative and real-world cases, and is validated with simulation.Fil: Achkar, Victoria Gabriela. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; ArgentinaFil: Brunaud, Braulio B.. University of Carnegie Mellon; Estados UnidosFil: Pérez, Héctor Daniel. University of Carnegie Mellon; Estados UnidosFil: Musa, Rami. University of Carnegie Mellon; Estados UnidosFil: Mendez, Carlos Alberto. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; ArgentinaFil: Grossmann, Ignacio E.. University of Carnegie Mellon; Estados UnidosElsevier Science2024-02info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/245977Achkar, Victoria Gabriela; Brunaud, Braulio B.; Pérez, Héctor Daniel; Musa, Rami; Mendez, Carlos Alberto; et al.; Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization; Elsevier Science; European Journal of Operational Research; 313; 1; 2-2024; 192-2060377-2217CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/abs/pii/S0377221723006173info:eu-repo/semantics/altIdentifier/doi/10.1016/j.ejor.2023.08.013info:eu-repo/semantics/altIdentifier/arxiv/https://arxiv.org/abs/2306.10961info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-29T10:44:00Zoai:ri.conicet.gov.ar:11336/245977instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-29 10:44:01.11CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
title Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
spellingShingle Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
Achkar, Victoria Gabriela
Multi-echelon inventory optimization based on guaranteed service.
Quadratically Constrained formulation
title_short Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
title_full Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
title_fullStr Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
title_full_unstemmed Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
title_sort Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization
dc.creator.none.fl_str_mv Achkar, Victoria Gabriela
Brunaud, Braulio B.
Pérez, Héctor Daniel
Musa, Rami
Mendez, Carlos Alberto
Grossmann, Ignacio E.
author Achkar, Victoria Gabriela
author_facet Achkar, Victoria Gabriela
Brunaud, Braulio B.
Pérez, Héctor Daniel
Musa, Rami
Mendez, Carlos Alberto
Grossmann, Ignacio E.
author_role author
author2 Brunaud, Braulio B.
Pérez, Héctor Daniel
Musa, Rami
Mendez, Carlos Alberto
Grossmann, Ignacio E.
author2_role author
author
author
author
author
dc.subject.none.fl_str_mv Multi-echelon inventory optimization based on guaranteed service.
Quadratically Constrained formulation
topic Multi-echelon inventory optimization based on guaranteed service.
Quadratically Constrained formulation
purl_subject.fl_str_mv https://purl.org/becyt/ford/2.4
https://purl.org/becyt/ford/2
dc.description.none.fl_txt_mv Multi-echelon inventory optimization (MEIO) plays a key role in a supply chain seeking to achieve specified customer service levels with a minimum capital in inventory. In this work, we propose a generalized MEIO model based on the Guaranteed Service approach to allocate safety stock levels across the network at the lowest holding cost. This model integrates several existing and some novel features that are usually present in pharmaceutical multi-echelon supply chains into a single model: review periods, manufacturing facilities, hybrid nodes (nodes with both internal and external demand), minimum order quantities (MOQ), and different service level performance indicators (fill rate and cycle service levels). We include a polynomial regression to approximate fill rates as a possible target measure to set safety stocks. To improve efficiency, we propose a nonlinear programming model to support decision making, which can be reformulated as a Quadratically Constrained Program (QCP), which leads to order of magnitude reductions in computational time. The performance of the model is evaluated by solving illustrative and real-world cases, and is validated with simulation.
Fil: Achkar, Victoria Gabriela. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; Argentina
Fil: Brunaud, Braulio B.. University of Carnegie Mellon; Estados Unidos
Fil: Pérez, Héctor Daniel. University of Carnegie Mellon; Estados Unidos
Fil: Musa, Rami. University of Carnegie Mellon; Estados Unidos
Fil: Mendez, Carlos Alberto. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; Argentina
Fil: Grossmann, Ignacio E.. University of Carnegie Mellon; Estados Unidos
description Multi-echelon inventory optimization (MEIO) plays a key role in a supply chain seeking to achieve specified customer service levels with a minimum capital in inventory. In this work, we propose a generalized MEIO model based on the Guaranteed Service approach to allocate safety stock levels across the network at the lowest holding cost. This model integrates several existing and some novel features that are usually present in pharmaceutical multi-echelon supply chains into a single model: review periods, manufacturing facilities, hybrid nodes (nodes with both internal and external demand), minimum order quantities (MOQ), and different service level performance indicators (fill rate and cycle service levels). We include a polynomial regression to approximate fill rates as a possible target measure to set safety stocks. To improve efficiency, we propose a nonlinear programming model to support decision making, which can be reformulated as a Quadratically Constrained Program (QCP), which leads to order of magnitude reductions in computational time. The performance of the model is evaluated by solving illustrative and real-world cases, and is validated with simulation.
publishDate 2024
dc.date.none.fl_str_mv 2024-02
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/245977
Achkar, Victoria Gabriela; Brunaud, Braulio B.; Pérez, Héctor Daniel; Musa, Rami; Mendez, Carlos Alberto; et al.; Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization; Elsevier Science; European Journal of Operational Research; 313; 1; 2-2024; 192-206
0377-2217
CONICET Digital
CONICET
url http://hdl.handle.net/11336/245977
identifier_str_mv Achkar, Victoria Gabriela; Brunaud, Braulio B.; Pérez, Héctor Daniel; Musa, Rami; Mendez, Carlos Alberto; et al.; Extensions to the guaranteed service model for industrial applications of multi-echelon inventory optimization; Elsevier Science; European Journal of Operational Research; 313; 1; 2-2024; 192-206
0377-2217
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/abs/pii/S0377221723006173
info:eu-repo/semantics/altIdentifier/doi/10.1016/j.ejor.2023.08.013
info:eu-repo/semantics/altIdentifier/arxiv/https://arxiv.org/abs/2306.10961
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier Science
publisher.none.fl_str_mv Elsevier Science
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
_version_ 1844614476317327360
score 13.070432

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