As addendum to the Inventory Aggregation Example it is noteworthy that Inventory Aggregation is known in literature also as "Portfolio Effect" for Inventories or "Square Root Law".
The phenomenon beyond all those terms is the same: when you aggregate inventories and demand of each client is independent one each other (or better not correlated), you can save on safety inventories by aggregation.
For more informations you can see for instance: Zinn, W., Levy M., Bowersox, D. J., "Measuring the Effect of Inventories Centralization/Decentralization on Aggregate Safety Stocks: The Square Root Law Revised", Business Logistics, Vol. 1, No. 1, 1989
SUCCESSO DEL CONVEGNO SULLA FILIERA DEI PICCOLI
Il 3 ottobre si è tenuta Umbria Fiere un convegno sulla filiera dei piccoli, con inverventi del prof. GIacchè, Stefano Saetta e Valentina Caldarelli dell'Università di Perugia.
Ha moderato il convegno la dott.ssa Tiziana Malafagia della Filiera dei Piccoli.
Tra i partecipanti anche l'ing. Filippo Gallinella, laureatosi in ingegneria meccanica presso la nostra facoltà e attualmente deputato.
Dal Piccolo Piccolo al Grande Grande al Piccolo Piccolo
L'intervento del prof. Stefano Saetta è stato incentrato sull'evidenziare come la Filiera dei Piccoli possa rappresentare un modello pilota di un nuovo modello di sviluppo industriale.
Exercise with Solution: The Bakery Case, Inventory Aggregation and Saving Matrix (4th, September 2014 Test)
GILI TEST Sept 4th, 2014
Bakery Case: Inventory Aggregation and Saving Matrix
(Re-adapted from Nahmias, Production and Operations Analysis, 2013, pp 334)
In Tarquinia, in the Cerveteri Cave where good wine is sold, old pallets are reused in this manner.
In the following a simple example shows that Matrix of Savings can be better tha nearest neighbor heuristics:
Consider the following point to be sequenced in a classical TSP:
The case was developed for the student of the course of Facility Management and Industrial Logistics
GILI TEST July 15th, 2014
EOQ and Savings Matrix
GILI TEST Jun 19th, 2014
STOVIGLIE (DISHES) Inventories Exercise
Here the text of the Test.
Exercise with Solution: EPQ, Cycle Service Level, Time Between Stock Out, Inventory Aggregation (May 29th, 2014 Test)
Here the text of the Test.
in the following links to past exams
Inventory Aggregation Example
In the following the code for implementing Aggregate Planning optimization with Linear Program.
Matlab Code for the Saving Matrix Method
this is my domestic try to burn cornstarch. I made it in order to show how easy is to burn cornstarch by blowing a candle with cornstarch.
You can find here the case of Saving Matrix Method In Italian