Integrated Inventory Control For Production With Multiple Substitutable Parts

With the rapid development of economic and social,neither both manufacturing enterprises and merchandising business are faced with increasingly diversified demand,an increasingly competitive environment with uncertainy.Faced with the increasingly competitive market,besides price,all enterprises take measures of differentiated strategies for their products.That is to say that products have much differences in quality,fashion,packaging,color or other aspects.In manufacturing,especially enterprises which focus on assember-to-order,they always consider the substitution of components in different production in management.These components always have similar function,which all meet the demand that production's requirement,but differences in origin and specifications.This thesis focus on integrated inventory control for production with multiple substitutable parts,in order to create the lowest cost.It is to say that enterprises can effectively use inventory to meet the demand,and they can improve the ability to adopt customization demand with production.In this thesis,we take a inventory management that use substituted components which can be used to meet other demands as background.We make integrated decisions from inventory control,components two-way substitution,and delivery delays or other perspective.Our final goal is to create the lowest cost.The main content of the paper is as follows:1)First,I read a lot of related literatures from our country or abroad.Based on the research in inventory control,analyze characteristics of components and parts,and also the problem of inventory control which focus on the maximum profits and the lowest cost.2)Second,faced with fixed orders of demands,we research the problem.Under the condition that don't permit shortage and don't take the lead time for pursuing into accont,we setup a basic mathematic model which is aimed at getting the lowest total cost.And we use the optimization software to solve the model.Then we compare the model with substitution and the one without.In order to know more about the model,we test the effective of it and create lots of numerical examples to analyze it.3)Furthermore,we add several conditions to the model.Admit shortage and lead time for pursuing are added to the model.Then we research the problem of inventory control with a condition that exsit delivery delay.As well we use optimization software to solve it.On the basic of the effective of the model,we get to know the characteristic of the model by a lot of numerical examples.And we compare the results with the last one which don't care shortage penaity and lead time.We conclude several suggestions to the inventory managers which we get from the results of the model.