Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 3

EOQ Related Abstracts

3 Chronolgy and Developments in Inventory Control Best Practices for FMCG Sector

Authors: Roopa Singh, Anurag Singh, Ajay

Abstract:

Agriculture contributes a major share in the national economy of India. A major portion of Indian economy (about 70%) depends upon agriculture as it forms the main source of income. About 43% of India’s geographical area is used for agricultural activity which involves 65-75% of total population of India. The given work deals with the Fast moving Consumer Goods (FMCG) industries and their inventories which use agricultural produce as their raw material or input for their final product. Since the beginning of inventory practices, many developments took place which can be categorised into three phases, based on the review of various works. The first phase is related with development and utilization of Economic Order Quantity (EOQ) model and methods for optimizing costs and profits. Second phase deals with inventory optimization method, with the purpose of balancing capital investment constraints and service level goals. The third and recent phase has merged inventory control with electrical control theory. Maintenance of inventory is considered negative, as a large amount of capital is blocked especially in mechanical and electrical industries. But the case is different in food processing and agro-based industries and their inventories due to cyclic variation in the cost of raw materials of such industries which is the reason for selection of these industries in the mentioned work. The application of electrical control theory in inventory control makes the decision-making highly instantaneous for FMCG industries without loss in their proposed profits, which happened earlier during first and second phases, mainly due to late implementation of decision. The work also replaces various inventories and work-in-progress (WIP) related errors with their monetary values, so that the decision-making is fully target-oriented.

Keywords: Control Theory, Feedback, Inventory Control, manufacturing sector, EOQ, FMCG sector

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2 The Carbon Emission Seesaw Effect

Authors: Adel Elomri

Abstract:

The notion of carbon footprinting is ever more widespread as companies are becoming increasingly aware that tackling carbon emissions and being seen to do so is a key issue to face governments, customers and other stakeholders’ pressures towards delivering environmentally friendly services and activities. In this contest, many firms are taking self-initiatives to reduce their own carbon emissions while some other are constrained to obey to different regulations/policies (e.g. carbon tax or carbon Cap) designed by higher authorities targeting a low-carbon environment. Using buyer-vendor framework, this paper provides some insights on how effective are these self-initiatives and regulatory policies when only concerning firms at the individual level and not the whole supply chain they are part of. We show that when firms individually engage in reducing their direct carbon emissions either under self-initiatives or regulatory policy, an opposite expected outcome resulting in a higher global supply chain emission can occur. This effect is referred to as the carbon seesaw effect. Moreover, we show that coordinating or centralizing the supply chain -contrary to what one may think at first- is not often the appropriate solution to get rid of this effect.

Keywords: Carbon Emissions, Sustainable Operations, supply chain coordination, EOQ

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1 Integrating Dependent Material Planning Cycle into Building Information Management: A Building Information Management-Based Material Management Automation Framework

Authors: Faris Elghaish, Sepehr Abrishami, Mark Gaterell, Richard Wise

Abstract:

The collaboration and integration between all building information management (BIM) processes and tasks are necessary to ensure that all project objectives can be delivered. The literature review has been used to explore the state of the art BIM technologies to manage construction materials as well as the challenges which have faced the construction process using traditional methods. Thus, this paper aims to articulate a framework to integrate traditional material planning methods such as ABC analysis theory (Pareto principle) to analyse and categorise the project materials, as well as using independent material planning methods such as Economic Order Quantity (EOQ) and Fixed Order Point (FOP) into the BIM 4D, and 5D capabilities in order to articulate a dependent material planning cycle into BIM, which relies on the constructability method. Moreover, we build a model to connect between the material planning outputs and the BIM 4D and 5D data to ensure that all project information will be accurately presented throughout integrated and complementary BIM reporting formats. Furthermore, this paper will present a method to integrate between the risk management output and the material management process to ensure that all critical materials are monitored and managed under the all project stages. The paper includes browsers which are proposed to be embedded in any 4D BIM platform in order to predict the EOQ as well as FOP and alarm the user during the construction stage. This enables the planner to check the status of the materials on the site as well as to get alarm when the new order will be requested. Therefore, this will lead to manage all the project information in a single context and avoid missing any information at early design stage. Subsequently, the planner will be capable of building a more reliable 4D schedule by allocating the categorised material with the required EOQ to check the optimum locations for inventory and the temporary construction facilitates.

Keywords: bim, Building Information Management, economic order quantity, EOQ, fixed order point, FOP, BIM 4D, BIM 5D

Procedia PDF Downloads 39