Inventory and Production Management in Supply Chains

In: Inventory

Authored by a team of experts, the new edition of this bestseller presents practical techniques for managing inventory and production throughout supply chains. It covers the current context of inventory and production management, replenishment systems for managing individual inventories within a firm, managing inventory in multiple locations and firms, and production management. The book presents sophisticated concepts and solutions with an eye towards today’s economy of global demand, cost-saving, and rapid cycles. It explains how to decrease working capital and how to deal with coordinating chains across boundaries.

Inventory and Production Management in Supply Chains | Edward A. Silver (Author), David F. Pyke (Author), Douglas J. Thomas (Author) | CRC Press

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Table of Contents


Chapter 1: The Importance of Inventory Management and Production Planning and Scheduling
Why Aggregate Inventory Investment Fluctuates: The Business Cycle, Corporate Strategy and the Role of Top Management, The Relationship of Finance and Marketing to Inventory Management and Production Planning and Scheduling, Operations Strategy, Measures of Effectiveness for Inventory Management and Production Planning and Scheduling Decisions, Summary

Chapter 2: Frameworks for Inventory Management and Production Planning and Scheduling
The Diversity of Stock-Keeping Unit, The Bounded Rationality of a Human Being, Decision Aids for Managing Diverse Individual Items, Frameworks for Inventory Management, A Framework for Production Planning and Scheduling, Costs and Other Important Factors, Three Types of Modeling Strategies, The Art of Modeling, Explicit Measurement of Costs, Implicit Cost Measurement and Exchange Curves, The Phases of a Major Study of an Inventory Management or Production Planning and Scheduling System, Summary

Chapter 3: Forecasting Models and Techniques
The Components of Time-Series Analysis, The Three Steps Involved in Statistically Forecasting a Time Series, Some Aggregate Medium-Range Forecasting Methods, Individual-Item, Short-Term Forecasting: Models and Procedures, Measuring the Performance of a Forecasting Process, Handling Anomalous Demand, Incorporation of Human Judgment, Dealing with Special Classes of Individual Items, Assessing Forecasting Procedures: Tactics and Strategy


Chapter 4: Order Quantities When Demand Is Approximately Level
Assumptions Leading to the Basic EOQ, Derivation of the EOQ, Sensitivity Analysis, Implementation Aids, Quantity Discounts, Accounting for inflation, Limits on order sizes, Finite Replenishment Rate: The Economic Production Quantity, Incorporation of Other Factors, Selection of the Carrying Charge (r), the Fixed Cost per Replenishment (A), or the Ratio A/r Based on Aggregate Considerations: The Exchange Curve

Chapter 5: Lot Sizing for Individual Items with Time-Varying Demand
The Complexity of Time-Varying Demand, The Choice of Approaches, General Assumptions and a Numerical Example, Use of a Fixed EOQ, The Wagner-Whitin Method: An “Optimal” Solution under an Additional Assumption, Heuristic Approaches for a Significantly Variable Demand Pattern, Handling of Quantity Discounts, Aggregate Exchange Curves

Chapter 6: Individual Items with Probabilistic Demand
Some Important Issues and Terminology, The Importance of the Item: A, B, and C Classification, Continuous versus Periodic Review, The Form of the Inventory Policy: Four Types of Control Systems, Specific Cost and Service Objectives, Two Examples of Finding the Reorder Point s in a Continuous-Review, Order-Point, Order-Quantity (s, Q) System, Decision Rules for Continuous-Review, Order-Point, Order-Quantity (s, Q) Control Systems, Implied Costs and Performance Measures, Decision Rules for Periodic-Review, Order-Up-to-Level (R, S) Control Systems, Variability in the Replenishment Lead Time Itself, Exchange Curves Involving SSs for (s, Q) Systems


Chapter 7: Managing the Most Important Inventories
Nature of Class A Items, Guidelines for Control of A Items, Simultaneous Determination of s and Q for Fast-Moving Items, Decision Rules for (s, S) Systems, Decision Rules for (R, s, S) Systems, Coping with Nonstationary Demand, Comments on Multiple Sources of Supply and Expediting

Chapter 8: Managing Slow-Moving and Low-Value (Class C) Inventories
Order-Point, Order-Quantity (s, Q) Systems for Slow-Moving A Items, Controlling the Inventories of Intermittent Demand Items, Nature of C Items, Control of C Items Having Steady Demand, Control of Items with Declining Demand Patterns, Reducing Excess Inventories, Stocking versus Not Stocking an Item, Summary

Chapter 9: Style Goods and Perishable Items
Style Goods Problem, Simplest Case: Unconstrained, Single-Item, Newsvendor Problem, Single-Period, Constrained, Multi-Item Situation, Postponed Product Differentiation, More than One Period in Which to Prepare for the Selling Season, Multiperiod Newsvendor Problem, Other Issues Relevant to the Control of Style Goods, Inventory Control of Perishable Items


Chapter 10: Coordinated Replenishment at a Single Stocking Point
Advantages and Disadvantages of Coordination, Deterministic Case: Selection of Replenishment Quantities in a Family of Items, Deterministic Case with Group Discounts, Case of Probabilistic Demand and No Quantity Discounts, Probabilistic Demand and Quantity Discounts, Production Environment, Shipping Consolidation

Chapter 11: Multiechelon Inventory Management
Multiechelon Inventory Management, Structure and Coordination, Deterministic Demand, Probabilistic Demand, Re-manufacturing and Product Recovery, Additional Insights

Chapter 12: Coordinating Inventory Management in the Supply Chain
Information Distortion in a Supply Chain, Collaboration and Information Sharing, Vendor-Managed Inventory, Aligning Incentives


Chapter 13: An Overall Framework for Production Planning and Scheduling
Characteristics of Different Production Processes, A Framework for Production Decision Making, Options in Dealing with the Hierarchy of Decisions

Chapter 14: Medium-Range Aggregate Production Planning
The Aggregate Planning Problem, The Costs Involved, The Planning Horizon, Two Pure Strategies: Level and Chase, Feasible Solution Methods, Linear Programming Models, Simulation Search Procedures, Modeling the Behavior of Managers, Planning for Adjustments Recognizing Uncertainty

Chapter 15: Material Requirements Planning and Its Extensions
The Complexity of Multistage Assembly Manufacturing, The Weaknesses of Traditional Replenishment Systems in a Manufacturing Setting, Closed-Loop MRP, Material Requirements Planning, Capacity Requirements Planning, Distribution Requirements Planning, Weaknesses of MRP, ERP Systems

Chapter 16: Just-in-Time, Optimized Production Technology and Short-Range Production Scheduling
Production Planning and Scheduling in Repetitive Situations: Just-in-Time, Planning and Scheduling in Situations with Bottlenecks: Optimized Production Technology, Short-Range Production Scheduling

Chapter 17: Summary
Operations Strategy, Changing the Givens, Future Developments


Written by IISCM

Integrated Institute of Supply Chain Management, a unit of Fhyzics Business Consultants Private Limited specialising in supply chain management consulting and education. IISCM trains and certifies SCM professionals in procurement, supply chain management, inventory, and warehousing.

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