Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer Levels
The Demand-Driven Material Resource Planning (DDMRP) method is one of the newer methods of inventory management in an enterprise. Its creation was initiated by a change in the business environment and the characteristics of today’s supply chains. DDMRP brings a combined pull/push approach to invento...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-04-01
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| Series: | Applied Sciences |
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| Online Access: | https://www.mdpi.com/2076-3417/14/7/3012 |
| _version_ | 1827286947228286976 |
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| author | Martin Krajčovič Gabriela Gabajová Martin Gašo Marek Schickerle |
| author_facet | Martin Krajčovič Gabriela Gabajová Martin Gašo Marek Schickerle |
| author_sort | Martin Krajčovič |
| collection | DOAJ |
| description | The Demand-Driven Material Resource Planning (DDMRP) method is one of the newer methods of inventory management in an enterprise. Its creation was initiated by a change in the business environment and the characteristics of today’s supply chains. DDMRP brings a combined pull/push approach to inventory management based on creating strategic stacks in the supply chain and managing inventory at these strategic points based on customer orders. The DDMRP system provides a simple methodology that is easy to apply, even in smaller businesses, without the need for advanced information systems. However, a simple methodology also has its limitations because, in many cases, intuitive and subjective approaches are used to set inventory management parameters (variability factor, running time factor, seasonality factor, thresholds, etc.). Simplified parameter determination may, under certain conditions, lead to some storage tanks being too high or too low for certain periods of time. We know from classical inventory management, in the conditions of setting stack parameters in DDMRP, that the deficiency can be eliminated by the use of statistical–analytical approaches and optimisation techniques. This article deals with the issue of setting optimal values of storage tanks in DDMRP, while the correctness of the methodology is verified through simulation of the demand-driven planning process. The correctness and usability of the proposed approaches in sizing strategic reservoirs in DDMRP was confirmed through the results of stimulation experiments. |
| first_indexed | 2024-04-24T10:48:37Z |
| format | Article |
| id | doaj.art-2d602f6cd2c1406abdd258bb22552d78 |
| institution | Directory Open Access Journal |
| issn | 2076-3417 |
| language | English |
| last_indexed | 2024-04-24T10:48:37Z |
| publishDate | 2024-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Applied Sciences |
| spelling | doaj.art-2d602f6cd2c1406abdd258bb22552d782024-04-12T13:15:27ZengMDPI AGApplied Sciences2076-34172024-04-01147301210.3390/app14073012Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer LevelsMartin Krajčovič0Gabriela Gabajová1Martin Gašo2Marek Schickerle3Department of Industrial Engineering, Faculty of Mechanical Engineering, University of Žilina, Univerzitná 8215/1, 01026 Žilina, SlovakiaDepartment of Industrial Engineering, Faculty of Mechanical Engineering, University of Žilina, Univerzitná 8215/1, 01026 Žilina, SlovakiaDepartment of Industrial Engineering, Faculty of Mechanical Engineering, University of Žilina, Univerzitná 8215/1, 01026 Žilina, SlovakiaDepartment of Industrial Engineering, Faculty of Mechanical Engineering, University of Žilina, Univerzitná 8215/1, 01026 Žilina, SlovakiaThe Demand-Driven Material Resource Planning (DDMRP) method is one of the newer methods of inventory management in an enterprise. Its creation was initiated by a change in the business environment and the characteristics of today’s supply chains. DDMRP brings a combined pull/push approach to inventory management based on creating strategic stacks in the supply chain and managing inventory at these strategic points based on customer orders. The DDMRP system provides a simple methodology that is easy to apply, even in smaller businesses, without the need for advanced information systems. However, a simple methodology also has its limitations because, in many cases, intuitive and subjective approaches are used to set inventory management parameters (variability factor, running time factor, seasonality factor, thresholds, etc.). Simplified parameter determination may, under certain conditions, lead to some storage tanks being too high or too low for certain periods of time. We know from classical inventory management, in the conditions of setting stack parameters in DDMRP, that the deficiency can be eliminated by the use of statistical–analytical approaches and optimisation techniques. This article deals with the issue of setting optimal values of storage tanks in DDMRP, while the correctness of the methodology is verified through simulation of the demand-driven planning process. The correctness and usability of the proposed approaches in sizing strategic reservoirs in DDMRP was confirmed through the results of stimulation experiments.https://www.mdpi.com/2076-3417/14/7/3012Demand-Driven Material Resource Planningstrategic buffersbuffer levelsorder cyclesafety stockprobability distribution |
| spellingShingle | Martin Krajčovič Gabriela Gabajová Martin Gašo Marek Schickerle Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer Levels Applied Sciences Demand-Driven Material Resource Planning strategic buffers buffer levels order cycle safety stock probability distribution |
| title | Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer Levels |
| title_full | Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer Levels |
| title_fullStr | Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer Levels |
| title_full_unstemmed | Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer Levels |
| title_short | Parameter Setting for Strategic Buffers in Demand-Driven Material Resource Planning through Statistical Analysis and Optimisation of Buffer Levels |
| title_sort | parameter setting for strategic buffers in demand driven material resource planning through statistical analysis and optimisation of buffer levels |
| topic | Demand-Driven Material Resource Planning strategic buffers buffer levels order cycle safety stock probability distribution |
| url | https://www.mdpi.com/2076-3417/14/7/3012 |
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