IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v34y2004i5p342-352.html
   My bibliography  Save this article

Inventory Requirements Planning at Lucent Technologies

Author

Listed:
  • Alex Bangash

    (Rumson Capital Advisors, Princeton Corporate Center, 5 Independence Way, Suite 300, Princeton, New Jersey 08540)

  • Ramesh Bollapragada

    (Decision Sciences Department, College of Business, San Francisco State University, San Francisco, California 94132)

  • Rachelle Klein

    (147-34 70th Road, Flushing, New York 11367)

  • Narayan Raman

    (Lucent Technologies Bell Labs, 101 Crawfords Corner Road, Room 4L-463, Holmdel, New Jersey 07733)

  • Herbert B. Shulman

    (AT&T Corporation, 200 Laurel Avenue, Middletown, New Jersey 07748)

  • Donald R. Smith

    (Department of Management, Monmouth University, 400 Cedar Avenue, West Long Branch, New Jersey 07764-1898)

Abstract

The inventory requirements planning (IRP) system is a decision-support tool that Lucent has used to determine its buffering requirements for parts in a time-phased provisioning system. It measured the deviation of actual supply and demand from their planned values and, using the historical profile of these deviations, determined the safety-stock levels Lucent needed to meet the desired service levels. In doing so, it quantified the relationships among the inventory drivers: supply intervals, demand and supply variability, desired service levels, and part proliferation. It used these drivers to identify and drive initiatives to improve processes to reduce uncertainty in the provisioning process. Several Lucent locations have used the IRP system to realign inventories and to improve service in various manufacturing and distribution facilities. The IRP system's value has been recognized through several awards. It also contributed to Lucent's receiving the Malcolm Baldrige Award in 1992 (as a part of AT&T Corporation) and subsequently the INFORMS Prize in 1998.

Suggested Citation

  • Alex Bangash & Ramesh Bollapragada & Rachelle Klein & Narayan Raman & Herbert B. Shulman & Donald R. Smith, 2004. "Inventory Requirements Planning at Lucent Technologies," Interfaces, INFORMS, vol. 34(5), pages 342-352, October.
    • Handle: RePEc:inm:orinte:v:34:y:2004:i:5:p:342-352
    DOI: 10.1287/inte.1040.0093
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1040.0093
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.1040.0093?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. T. S. Lee & Everett E. Adam, Jr., 1986. "Forecasting Error Evaluation in Material Requirements Planning (MRP) Production-Inventory Systems," Management Science, INFORMS, vol. 32(9), pages 1186-1205, September.
    2. Hau L. Lee & Corey Billington, 1993. "Material Management in Decentralized Supply Chains," Operations Research, INFORMS, vol. 41(5), pages 835-847, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ki-Seok Choi & J. G. Dai & Jing-Sheng Song, 2004. "On Measuring Supplier Performance Under Vendor-Managed-Inventory Programs in Capacitated Supply Chains," Manufacturing & Service Operations Management, INFORMS, vol. 6(1), pages 53-72, April.
    2. Peretzke, Julia & Sandhaus, Gregor, 2017. "Einsatzpotentiale von Cognitive Computing zur Unterstützung der Entscheidungsfindung im Supply Chain Management," ild Schriftenreihe 53, FOM Hochschule für Oekonomie & Management, Institut für Logistik- & Dienstleistungsmanagement (ild).
    3. Stenger, Alan J., 1996. "Reducing inventories in a multi-echelon manufacturing firm A case study," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 239-249, August.
    4. Ngniatedema, Thomas & Shanker, Murali & Hu, Michael Y. & Guiffrida, Alfred L. & Eddy Patuwo, B., 2015. "Late customization strategy with service levels requirements," International Journal of Production Economics, Elsevier, vol. 166(C), pages 72-84.
    5. Erenguc, S. Selcuk & Simpson, N. C. & Vakharia, Asoo J., 1999. "Integrated production/distribution planning in supply chains: An invited review," European Journal of Operational Research, Elsevier, vol. 115(2), pages 219-236, June.
    6. Henri Barki & Alain Pinsonneault, 2005. "A Model of Organizational Integration, Implementation Effort, and Performance," Organization Science, INFORMS, vol. 16(2), pages 165-179, April.
    7. Ho‐Yin Mak & Zuo‐Jun Max Shen, 2009. "A two‐echelon inventory‐location problem with service considerations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 56(8), pages 730-744, December.
    8. Danese, Pamela & Kalchschmidt, Matteo, 2011. "The role of the forecasting process in improving forecast accuracy and operational performance," International Journal of Production Economics, Elsevier, vol. 131(1), pages 204-214, May.
    9. Hoogstra-Klein, Marjanke A. & Meijboom, Kars, 2021. "A qualitative exploration of the wood product supply chain – investigating the possibilities and desirability of an increased demand orientation," Forest Policy and Economics, Elsevier, vol. 133(C).
    10. Meng, Qiang & Huang, Yikai & Cheu, Ruey Long, 2009. "Competitive facility location on decentralized supply chains," European Journal of Operational Research, Elsevier, vol. 196(2), pages 487-499, July.
    11. Carland, Corinne & Goentzel, Jarrod & Montibeller, Gilberto, 2018. "Modeling the values of private sector agents in multi-echelon humanitarian supply chains," European Journal of Operational Research, Elsevier, vol. 269(2), pages 532-543.
    12. Andersson, Jonas & Marklund, Johan, 2000. "Decentralized inventory control in a two-level distribution system," European Journal of Operational Research, Elsevier, vol. 127(3), pages 483-506, December.
    13. Blackhurst, Jennifer & (Teresa) Wu, Tong & Craighead, Christopher W., 2008. "A systematic approach for supply chain conflict detection with a hierarchical Petri Net extension," Omega, Elsevier, vol. 36(5), pages 680-696, October.
    14. Mohebbi, E. & Choobineh, F., 2005. "The impact of component commonality in an assemble-to-order environment under supply and demand uncertainty," Omega, Elsevier, vol. 33(6), pages 472-482, December.
    15. Chan K. Hahn & Edward A. Duplaga & Janet L. Hartley, 2000. "Supply-Chain Synchronization: Lessons from Hyundai Motor Company," Interfaces, INFORMS, vol. 30(4), pages 32-45, August.
    16. Kevin H. Shang & Jing-Sheng Song, 2006. "A Closed-Form Approximation for Serial Inventory Systems and Its Application to System Design," Manufacturing & Service Operations Management, INFORMS, vol. 8(4), pages 394-406, September.
    17. Stephen C. Graves & Sean P. Willems, 2000. "Optimizing Strategic Safety Stock Placement in Supply Chains," Manufacturing & Service Operations Management, INFORMS, vol. 2(1), pages 68-83, June.
    18. Loren Troyer & James Smith & Sean Marshall & Elan Yaniv & Sridhar Tayur & Martin Barkman & Alev Kaya & Yong Liu, 2005. "Improving Asset Management and Order Fulfillment at Deere & Company's C&CE Division," Interfaces, INFORMS, vol. 35(1), pages 76-87, February.
    19. Tagaras, George, 1999. "Pooling in multi-location periodic inventory distribution systems," Omega, Elsevier, vol. 27(1), pages 39-59, February.
    20. Feng Yang & Dexiang Wu & Liang Liang & Gongbing Bi & Desheng Wu, 2011. "Supply chain DEA: production possibility set and performance evaluation model," Annals of Operations Research, Springer, vol. 185(1), pages 195-211, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:34:y:2004:i:5:p:342-352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.