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A PERFORMANCE METRIC TO IDENTIFY INEFFICIENT EARLY DELIVERIES IN A VENDOR-MANAGED INVENTORY SYSTEM

IP.com Disclosure Number: IPCOM000250611D
Publication Date: 2017-Aug-08
Document File: 1 page(s) / 14K

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A PERFORMANCE METRIC TO IDENTIFY INEFFICIENT EARLY DELIVERIES IN A VENDOR-MANAGED INVENTORY SYSTEM

Our work develops and implements an operational metric in a software module to determine inefficient deliveries that are obtained from solving the bulk gas distribution which is an inventory routing problem (IRP).  The IRP in bulk gas distribution is either solved using a heuristics approach or a near-optimal methodology using an approximate mathematical model of real-life operations.  The metric detects the inefficient early deliveries that are made to bulk gas customers.  We assume that is that there exists a generic module that improves an existing solution and works iteratively with our metric. In short, we evaluate the efficiency of logistics operations in a vendor-managed inventor (VMI) system.

In the literature survey, we have found papers that deal with two main distribution strategies on making deliveries in a vendor-managed inventory system called maximum level (ML) and order up-to (OU).  ML is flexible in delivery amount but bound by the customer capacity, where an OU policy always fills up the customer to the maximum capacity possible whenever a delivery is made.  There is also literature that calculates the tighter lower bounds on distribution efficiency.  We also find papers that use volume per mile as a performance indicator for bulk gas distribution.  Our performance indicator is a better way of identifying the quality of bulk gas deliveries.  This indic...