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Layout Planning

In: Global Supply Chain and Operations Management

Author

Listed:
  • Dmitry Ivanov

    (Berlin School of Economics and Law)

  • Alexander Tsipoulanidis

    (Berlin School of Economics and Law)

  • Jörn Schönberger

    (Technical University of Dresden)

Abstract

In this chapter, inventory management principles are discussed. It begins with an introductory case-study covering different inventory management principles in automotive, electronics, and e-commerce industries. Then, the trade-off between “service levels” and “costs” in inventory management is highlighted. Next, the role of inventory in the supply chain is analyzed. To this end, the ABC and XYZ analysis is introduced and the use of the EOQ/EPQ models for independent inventory demand is explained. Subsequently, how to compute a reorder point and how to calculate service levels and probabilistic inventory models is shown. Following this, the applicability of dynamic lot-sizing models is elaborated. Finally, the computation of the effects of inventory aggregation is discussed and the ATP/CTP concept is explained. The chapter is accompanied by an E-Supplement which provides additional case studies, Excel templates, tasks, and video streams.

Suggested Citation

  • Dmitry Ivanov & Alexander Tsipoulanidis & Jörn Schönberger, 2019. "Layout Planning," Springer Texts in Business and Economics, in: Global Supply Chain and Operations Management, edition 2, chapter 10, pages 293-315, Springer.
    • Handle: RePEc:spr:sptchp:978-3-319-94313-8_10
    DOI: 10.1007/978-3-319-94313-8_10
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