IDEAS home Printed from https://ideas.repec.org/h/spr/ihichp/978-3-642-04313-0_22.html
   My bibliography  Save this book chapter

Improving Allocation of Inventory for Quick Response to Customer Orders: A Case Study

In: Innovative Quick Response Programs in Logistics and Supply Chain Management

Author

Listed:
  • Tej S. Dhakar

    (Southern New Hampshire University)

  • Charles P. Schmidt
  • David M. Miller

Abstract

This paper is based on a study of the allocation of available inventory to customer orders at a large apparel manufacturing organization. As a number of items were in short supply at the beginning of each month, few orders were being filled completely. Majority of the orders were being filled at the end of the month when most inventory items become available for shipment. The finished goods distribution center at the company was thus faced with an uneven distribution of workload during the month resulting in reduced labor productivity and significant overtime cost. A new heuristic-based procedure for allocating available inventory to customer orders was developed with a number of unique features. The heuristic was tested against the old allocation procedure as well as against linear and integer programming models of the problem. The heuristic was found to perform much better than the old allocation procedure and almost as well as the mathematical models. The new allocation procedure was implemented and a more even distribution of workload, lower inventories, reduction in labor cost, and quicker response to customer orders were achieved.

Suggested Citation

  • Tej S. Dhakar & Charles P. Schmidt & David M. Miller, 2010. "Improving Allocation of Inventory for Quick Response to Customer Orders: A Case Study," International Handbooks on Information Systems, in: T. C. Edwin Cheng & Tsan-Ming Choi (ed.), Innovative Quick Response Programs in Logistics and Supply Chain Management, pages 455-463, Springer.
    • Handle: RePEc:spr:ihichp:978-3-642-04313-0_22
    DOI: 10.1007/978-3-642-04313-0_22
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghamat, Salar & Pun, Hubert, 2023. "The impact of capacity information on lexicographical capacity allocation," European Journal of Operational Research, Elsevier, vol. 308(2), pages 636-649.

    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:spr:ihichp:978-3-642-04313-0_22. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.