Coordinated replenishments with alternative supply sources in two-level supply chains

Article Abstract:

We consider a two-level supply chain with two warehouses and two retailers. Each facility uses a continuous review (R, Q)-ordering policies for stock replenishments. The retailers are identical and face independent Poisson demands. Each warehouse places orders for replenishments with an outside supplier which has unlimited stocks. Transportation times are constant and all stockouts at both levels are completely backordered. Under normal circumstances, all orders of each retailer are delivered by only one warehouse, which is designated to serve that retailer. But in case that the warehouse is out of stock, there are two alternatives to the retailer: to wait an extra time until the warehouse replenishes its stock or to place an order with the other warehouse. However, the latter decision incurs a higher transportation cost. In this paper, we study two inventory models with alternative supply possibilities and different levels of coordination between warehouses and retailers, and compare the performance of these models with that of a traditional model where ordering from only one of the warehouses is allowed for each retailer. Keywords: Multi-level inventory systems; Reorder point policies

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Simulating business and operations management -- a learning environment for the electronics industry

Article Abstract:

The Training Factory for the Electronics Industry has been working since 1999. It is a common project of several companies and educational organizations. It is a kind of network project created in conjunction with the Pro Electronica project of Oulu regional centre excellence programme. The purpose of the project has been to create a learning environment where industrial engineering, operations management of entire production line, logistics and business in the electronics industry can be simulated and learned. The history of business simulations in general is more than 40 years long. Since first introduced the development of simulations has been diverse. The main purpose of business games or simulations is to imitate the real decision making process or environment of business. Although some simulations are better and some worse, the method used in all simulations is a form of experiential learning. In the Institute for Management and Technological Training (POHTO) there is long experience of simulations and the method of learning by doing. Green-Power[TM] is the first generation training factory aimed especially at the process industry. Because of the good experience the second generation training factory -- OperEx-Power[TM] -- was constructed to correspond to the specific features of the electronics industry. The main purpose of this article is to present the created participating learning environment in total and describe the managerial functions of OperEx-Power[TM] connected to production automation. The second goal is to describe the construction process of the environment, based on the Kolb (1984) theory of experiential learning and using a constructive framework. Conclusions are at the end of the review based on experiences from training events. Keywords: Training factory; Manufacturing; Business simulation; Experiential learning

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Multiproduct CVP analysis based on contribution rules

Article Abstract:

The basic cost-volume-profit (CVP) model -- linear, non-stochastic and restricted to one product -- has been the subject of research work aimed at relaxing these limiting assumptions. Regarding its extension to a multiproduct situation, the two alternatives are to use a standard mix, or to apply linear programming. This paper develops an alternative model for multiproduct CVP. It uses data provided by ABC systems designed to keep track of variable and fixed costs, and requires the model user to formulate a contribution rule that will allow to compute, for each product, the output required to achieve a given (target) profit. Keywords: CVP; Multiproduct; Contribution margin; ABC

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