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Progressive Control Method

In: Manufacturing and Service Enterprise with Risks II

Author

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  • Masayuki Matsui

    (The University of Electro-Communications
    Kanagawa University)

Abstract

Some traditional methods of inventory control inventory control are statistical approaches that cannot deal with real demand fluctuations in modern society. In this chapter, we develop a look-ahead method for on-demand supply by using the pull-type progressive control method and apply it to inventory control in each stage of the supply chain. The presented method is an innovative/stochastic approach to supply chain control that provides an effective tool for demand-to-supply SCM in the RFID age (medium control tool). The key concept is the introduction of moving-standard inventory using the newsvendor problem and Matsui’s logic for its look-ahead. Several case studies are presented using the ODICS software, which is employed by wholesalers, distributors, and manufacturers, and notable reductions in inventory are shown in all cases.

Suggested Citation

  • Masayuki Matsui, 2014. "Progressive Control Method," International Series in Operations Research & Management Science, in: Manufacturing and Service Enterprise with Risks II, edition 127, chapter 0, pages 45-59, Springer.
    • Handle: RePEc:spr:isochp:978-4-431-54619-1_4
    DOI: 10.1007/978-4-431-54619-1_4
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