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An inventory control project in a major Danish company using compound renewal demand models

Research output: Working paperResearch

Standard

An inventory control project in a major Danish company using compound renewal demand models. / Larsen, Christian; Seiding, Claus Hoe; Teller, Christian; Thorstenson, Anders.

Aarhus : Aarhus School of Business, Aarhus University, Department of Business Studies, 2007.

Research output: Working paperResearch

Harvard

Larsen, C, Seiding, CH, Teller, C & Thorstenson, A 2007 'An inventory control project in a major Danish company using compound renewal demand models' Aarhus School of Business, Aarhus University, Department of Business Studies, Aarhus.

APA

Larsen, C., Seiding, C. H., Teller, C., & Thorstenson, A. (2007). An inventory control project in a major Danish company using compound renewal demand models. Aarhus: Aarhus School of Business, Aarhus University, Department of Business Studies.

CBE

Larsen C, Seiding CH, Teller C, Thorstenson A. 2007. An inventory control project in a major Danish company using compound renewal demand models. Aarhus: Aarhus School of Business, Aarhus University, Department of Business Studies.

MLA

Larsen, Christian et al. An inventory control project in a major Danish company using compound renewal demand models. Aarhus: Aarhus School of Business, Aarhus University, Department of Business Studies. 2007., 26 p.

Vancouver

Larsen C, Seiding CH, Teller C, Thorstenson A. An inventory control project in a major Danish company using compound renewal demand models. Aarhus: Aarhus School of Business, Aarhus University, Department of Business Studies. 2007.

Author

Larsen, Christian ; Seiding, Claus Hoe ; Teller, Christian ; Thorstenson, Anders. / An inventory control project in a major Danish company using compound renewal demand models. Aarhus : Aarhus School of Business, Aarhus University, Department of Business Studies, 2007.

Bibtex

@techreport{c58e30b0caf511db8cc2000ea68e967b,
title = "An inventory control project in a major Danish company using compound renewal demand models",
abstract = " We describe the development of a framework to compute the optimal inventory policy for a large spare-parts' distribution centre operation in the RA division of the Danfoss Group in Denmark. The RA division distributes spare parts worldwide for cooling and A/C systems. The warehouse logistics operation is highly automated. However, the procedures for estimating demands and the policies for the inventory control system that were in use at the beginning of the project did not fully match the sophisticated technological standard of the physical system. During the initial phase of the project development we focused on the fitting of suitable demand distributions for spare parts and on the estimation of demand parameters. Demand distributions were chosen from a class of compound renewal distributions. In the next phase, we designed models and algorithmic procedures for determining suitable inventory control variables based on the fitted demand distributions and a service level requirement stated in terms of an order fill rate. Finally, we validated the results of our models against the procedures that had been in use in the company. It was concluded that the new procedures were considerably more consistent with the actual demand processes and with the stated objectives for thedistribution centre. We also initiated the implementation and integration of the newprocedures into the company's inventory management system.",
keywords = "Base-stock policy, compound distribution, fill rate, inventory control,",
author = "Christian Larsen and Seiding, {Claus Hoe} and Christian Teller and Anders Thorstenson",
year = "2007",
language = "English",
publisher = "Aarhus School of Business, Aarhus University, Department of Business Studies",
type = "WorkingPaper",
institution = "Aarhus School of Business, Aarhus University, Department of Business Studies",

}

RIS

TY - UNPB

T1 - An inventory control project in a major Danish company using compound renewal demand models

AU - Larsen, Christian

AU - Seiding, Claus Hoe

AU - Teller, Christian

AU - Thorstenson, Anders

PY - 2007

Y1 - 2007

N2 -  We describe the development of a framework to compute the optimal inventory policy for a large spare-parts' distribution centre operation in the RA division of the Danfoss Group in Denmark. The RA division distributes spare parts worldwide for cooling and A/C systems. The warehouse logistics operation is highly automated. However, the procedures for estimating demands and the policies for the inventory control system that were in use at the beginning of the project did not fully match the sophisticated technological standard of the physical system. During the initial phase of the project development we focused on the fitting of suitable demand distributions for spare parts and on the estimation of demand parameters. Demand distributions were chosen from a class of compound renewal distributions. In the next phase, we designed models and algorithmic procedures for determining suitable inventory control variables based on the fitted demand distributions and a service level requirement stated in terms of an order fill rate. Finally, we validated the results of our models against the procedures that had been in use in the company. It was concluded that the new procedures were considerably more consistent with the actual demand processes and with the stated objectives for thedistribution centre. We also initiated the implementation and integration of the newprocedures into the company's inventory management system.

AB -  We describe the development of a framework to compute the optimal inventory policy for a large spare-parts' distribution centre operation in the RA division of the Danfoss Group in Denmark. The RA division distributes spare parts worldwide for cooling and A/C systems. The warehouse logistics operation is highly automated. However, the procedures for estimating demands and the policies for the inventory control system that were in use at the beginning of the project did not fully match the sophisticated technological standard of the physical system. During the initial phase of the project development we focused on the fitting of suitable demand distributions for spare parts and on the estimation of demand parameters. Demand distributions were chosen from a class of compound renewal distributions. In the next phase, we designed models and algorithmic procedures for determining suitable inventory control variables based on the fitted demand distributions and a service level requirement stated in terms of an order fill rate. Finally, we validated the results of our models against the procedures that had been in use in the company. It was concluded that the new procedures were considerably more consistent with the actual demand processes and with the stated objectives for thedistribution centre. We also initiated the implementation and integration of the newprocedures into the company's inventory management system.

KW - Base-stock policy, compound distribution, fill rate, inventory control,

M3 - Working paper

BT - An inventory control project in a major Danish company using compound renewal demand models

PB - Aarhus School of Business, Aarhus University, Department of Business Studies

CY - Aarhus

ER -