Placing Safety Stock in Logistic Networks under Guaranteed-Service Time Inventory Models: An Application to the Automotive Industry

 

L. A. Moncayo-Martínez*^1,2, E. O. Reséndiz-Flores², D. Mercado² and C. Sánchez-Ramírez³

 

¹ Department of Industrial and Operation Engineering, Instituto Tecnológico Autónomo de México (ITAM) México, D. F., México. *luis.moncayo@itam.mx

² Division of Postgraduate Studies and Research, The Technological Institute of Saltillo Saltillo, Coahuila, México.

³ División de Ciencias e Ingenieria, Department of Industrial Engineering & Manufacturing Science, Orizaba Institute of Technology Orizaba, Veracruz, México.

 

ABSTRACT

The aim of this paper is to solve the problem of placing safety stock over a Logistic Network (LN) that is represented by a Generic Bill of Materials (GBOM). Thus the LN encompasses supplying, assembling, and delivering stages. We describe, in detail, the recursive algorithm based on Dynamic Programming (DP) to solve the placing safety stock problem under guaranteed-service time models. We also develop a java-based application (JbA) that both models the LN and runs the recursive DP algorithm. We solved a real case of a company that manufactures fixed brake and clutch pedal modules of cars' brake system. After running JbA, the levels of inventory decreased by zero in 55 out of 65 stages.

Keywords: Safety Stock, Guaranteed-service time, Dynamic Programming, Automotive Industry.

 

RESUMEN

El objetivo de este artículo es resolver el problema de colocación inventario en una Red Logística (LN) que es representada por una Lista de Materiales Genérica (GBOM), de manera que la LN tiene etapas de suministro, ensamble y entrega. Describimos, a detalle, el algoritmo recursivo de Programación Dinámica (DP) para resolver el problema de colocación de inventario en modelos de servicio garantizado. También programamos una aplicación en java (JbA) que modela la LN y ejecuta las operaciones recursivas del algoritmo de DP. Resolvimos un caso real de una empresa que manufactura módulos de frenos y pedales del clutch del sistema de frenos utilizados en los autos. Los resultados muestran que los niveles de inventarios se reducen a cero en 55 de 65 etapas después de ejecutar nuestra JbA.

 

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