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Employment of advanced approach to control inventory level by monitoring Safety Stock in Supply Chain under Uncertain environment

Author

Listed:
  • Riyadh Jamegh

    (Baghdad goveroraten)

  • AllaEldin Kassam

    (Baghdad goveroraten)

  • Sawsan Sabih

    (Baghdad goveroraten)

Abstract

In order to overcome uncertainty situation and inability to meet with customers' demand due to uncertainty, the organizations tend to keep a certain safety stock level. In this paper, the researcher used soft computing to identify optimal safety stock level (SSL), the fuzzy model uses dynamic concept to cope with high complexity environment status and control the inventory. The proposed approach deals with demand stability level, raw material availability level, and on hand inventory level by using fuzzy logic to obtain SSL. In this approach, demand stability, raw material, and on hand inventory are described linguistically and treated by inference rules of fuzzy model to extract best level of safety stock. The numerical dairy industry case study was applied with yogurt 200 gm cup product.

Suggested Citation

  • Riyadh Jamegh & AllaEldin Kassam & Sawsan Sabih, 2019. "Employment of advanced approach to control inventory level by monitoring Safety Stock in Supply Chain under Uncertain environment," Proceedings of International Academic Conferences 8711585, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:8711585
    as

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    File URL: https://iises.net/proceedings/iises-international-academic-conference-copenhagen/table-of-content/detail?cid=87&iid=022&rid=11585
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    References listed on IDEAS

    as
    1. Boulaksil, Youssef, 2016. "Safety stock placement in supply chains with demand forecast updates," Operations Research Perspectives, Elsevier, vol. 3(C), pages 27-31.
    2. Stephen C. Graves & Sean P. Willems, 2000. "Optimizing Strategic Safety Stock Placement in Supply Chains," Manufacturing & Service Operations Management, INFORMS, vol. 2(1), pages 68-83, June.
    3. Grace Hua, N. & Willems, Sean P., 2016. "Analytical insights into two-stage serial line supply chain safety stock," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 107-112.
    4. Kumar, Kunal & Aouam, Tarik, 2018. "Integrated lot sizing and safety stock placement in a network of production facilities," International Journal of Production Economics, Elsevier, vol. 195(C), pages 74-95.
    5. Persona, Alessandro & Battini, Daria & Manzini, Riccardo & Pareschi, Arrigo, 2007. "Optimal safety stock levels of subassemblies and manufacturing components," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 147-159, October.
    6. Osman, Hany & Demirli, Kudret, 2012. "Integrated safety stock optimization for multiple sourced stockpoints facing variable demand and lead time," International Journal of Production Economics, Elsevier, vol. 135(1), pages 299-307.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inventory optimization; soft computing; safety stock optimization; dairy industries; inventory optimization.;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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