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Building knowledge to improve enterprise performance from inventory simulation models

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  • Diaz, Rafael
  • Bailey, Mike

Abstract

This paper describes the process of building knowledge to improve enterprise performance. This allows managers both to identify unknown risks and to develop solutions that mitigate these risks. One of the most critical risks that the enterprise faces involves the unidentified presence of serial-correlation components on the demand patterns. Depending upon the levels of such correlation, inventory control policies can be appreciably inaccurate. We propose to use a knowledge management portfolio that allows managers to capture and build knowledge from their complex systems. We find that the error generated from ignoring identified risk factors exponentially grows as the autocorrelation increases. We construct an enhanced simulated annealing algorithm that provides superior solutions to this type of problem.

Suggested Citation

  • Diaz, Rafael & Bailey, Mike, 2011. "Building knowledge to improve enterprise performance from inventory simulation models," International Journal of Production Economics, Elsevier, vol. 134(1), pages 108-113, November.
    • Handle: RePEc:eee:proeco:v:134:y:2011:i:1:p:108-113
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    References listed on IDEAS

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    Cited by:

    1. Abdelkader Daghfous & Taisier Zoubi, 2017. "An Auditing Framework for Knowledge-Enabled Supply Chain Management: Implications for Sustainability," Sustainability, MDPI, vol. 9(5), pages 1-16, May.
    2. Rafael Diaz, 2016. "Using dynamic demand information and zoning for the storage of non-uniform density stock keeping units," International Journal of Production Research, Taylor & Francis Journals, vol. 54(8), pages 2487-2498, April.
    3. Abdelkader Daghfous & Omar Belkhodja, 2019. "Managing Talent Loss in the Procurement Function: Insights from the Hospitality Industry," Sustainability, MDPI, vol. 11(23), pages 1-19, November.

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