Growing Global Competitors: Cost Masters
Growing global competitors and cost stress power enterprises and provide chains to find undetected cost-saving potentials. Particularly, interfaces towards the uncooked materials’ market really are a promising area for enhancement.
This paper presents a deterministic optimum control approach optimizing the procurement and inventory coverage of the enterprise that's processing a uncooked materials once the buying price, keeping cost, and the need rate fluctuate over time.
Making use of Pontryagin's maximum theory, the optimum policy turns out to become of the bang-bang kind involving impulse and just-in-time procurement. Numerical illustrations illustrate the solutions obtained and compare the optimum coverage with easy replenishment strategies.