A mixed 0-1 integer programming for inventory model: a case study of TFT-LCD manufacturing company in Taiwan. (English) Zbl 1172.90310
Summary: Purpose - This paper seeks to construct a model for inventory management for multiple periods. The model considers not only the usual parameters, but also price quantity discount, storage and batch size constraints.
Design/methodology/approach - Mixed 0-1 integer programming is applied to solve the multi-period inventory problem and to determine an appropriate inventory level for each period. The total cost of materials in the system is minimized and the optimal purchase amount in each period is determined.
Findings - The proposed model is applied in colour filter inventory management in thin film transistor-liquid crystal display (TFT-LCD) manufacturing because colour filter replenishment has the characteristics of price quantity discount, large product size, batch-sized purchase and forbidden shortage in the plant. Sensitivity analysis of major parameters of the model is also performed to depict the effects of these parameters on the solutions.
Practical implications - The proposed model can be tailored and applied to other inventory management problems.
Originality/value - Although many mathematical models are available for inventory management, this study considers some special characteristics that might be present in real practice. TFT-LCD manufacturing is one of the most prosperous industries in Taiwan, and colour-filter inventory management is essential for TFT-LCD manufacturers for achieving competitive edge. The proposed model in this study can be applied to fulfil the goal.
Design/methodology/approach - Mixed 0-1 integer programming is applied to solve the multi-period inventory problem and to determine an appropriate inventory level for each period. The total cost of materials in the system is minimized and the optimal purchase amount in each period is determined.
Findings - The proposed model is applied in colour filter inventory management in thin film transistor-liquid crystal display (TFT-LCD) manufacturing because colour filter replenishment has the characteristics of price quantity discount, large product size, batch-sized purchase and forbidden shortage in the plant. Sensitivity analysis of major parameters of the model is also performed to depict the effects of these parameters on the solutions.
Practical implications - The proposed model can be tailored and applied to other inventory management problems.
Originality/value - Although many mathematical models are available for inventory management, this study considers some special characteristics that might be present in real practice. TFT-LCD manufacturing is one of the most prosperous industries in Taiwan, and colour-filter inventory management is essential for TFT-LCD manufacturers for achieving competitive edge. The proposed model in this study can be applied to fulfil the goal.
MSC:
| 90B05 | Inventory, storage, reservoirs |
| 90C11 | Mixed integer programming |
| 90B90 | Case-oriented studies in operations research |
References:
| [1] | DOI: 10.1007/s00291-005-0196-8 · Zbl 1091.90004 · doi:10.1007/s00291-005-0196-8 |
| [2] | DOI: 10.1016/j.apm.2005.03.003 · Zbl 1163.90321 · doi:10.1016/j.apm.2005.03.003 |
| [3] | DOI: 10.1057/palgrave.jors.2601172 · Zbl 1178.90010 · doi:10.1057/palgrave.jors.2601172 |
| [4] | Chang, C.T., Chin, C.L. and Lin, M.F. (2006), ”On the single item multi-supplier system with variable lead-time, price-quantity discount, and resource constraints”, Applied Mathematics and Computation, available at: www.elsivier.com/locate/amc. · Zbl 1154.91523 |
| [5] | DOI: 10.1016/j.cor.2004.05.007 · Zbl 1178.90012 · doi:10.1016/j.cor.2004.05.007 |
| [6] | DOI: 10.1016/j.omega.2004.08.007 · doi:10.1016/j.omega.2004.08.007 |
| [7] | DOI: 10.1057/palgrave.jors.2601106 · Zbl 1088.90515 · doi:10.1057/palgrave.jors.2601106 |
| [8] | Kang, H.Y. (2006), ”Optimal replenishment policies for deteriorating control wafers inventory”, International Journal of Advanced Manufacturing Technology, available at: www.springerlink.com/content/1433-3015/. |
| [9] | DOI: 10.1080/00207540500142332 · Zbl 1095.90534 · doi:10.1080/00207540500142332 |
| [10] | DOI: 10.1016/S0305-0548(99)00076-3 · Zbl 0971.90028 · doi:10.1016/S0305-0548(99)00076-3 |
| [11] | DOI: 10.1016/j.ijpe.2005.05.008 · doi:10.1016/j.ijpe.2005.05.008 |
| [12] | Lin, J.T., Chen, T.L. and Huang, C.C. (2004), ”A hierarchy planning model for TFT-LCD production chain”, International Journal of Electronic Business Management, Vol. 2 No. 1, pp. 59-68. |
| [13] | DOI: 10.1016/j.ejor.2004.12.002 · Zbl 1125.90005 · doi:10.1016/j.ejor.2004.12.002 |
| [14] | DOI: 10.1016/S0925-5273(02)00332-8 · doi:10.1016/S0925-5273(02)00332-8 |
| [15] | DOI: 10.1016/S0925-5273(03)00182-8 · doi:10.1016/S0925-5273(03)00182-8 |
| [16] | DOI: 10.1016/j.ejor.2005.01.053 · Zbl 1116.90012 · doi:10.1016/j.ejor.2005.01.053 |
| [17] | DOI: 10.1111/j.1540-5414.2005.00105.x · doi:10.1111/j.1540-5414.2005.00105.x |
| [18] | DOI: 10.1016/j.ejor.2003.10.038 · Zbl 1132.90302 · doi:10.1016/j.ejor.2003.10.038 |
| [19] | DOI: 10.1016/j.ejor.2004.10.001 · Zbl 1116.90014 · doi:10.1016/j.ejor.2004.10.001 |
| [20] | DOI: 10.1016/S0377-2217(03)00241-8 · Zbl 1103.90313 · doi:10.1016/S0377-2217(03)00241-8 |
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.
