Time : 12 Monday afternoons (October 2 - October 30; November 13 - December 18)
Location :
Lecturers : Part a (4 sessions): Prof.dr. A.G. de Kok (TUE)
Part b (3 sessions): R. Dekker (EUR)
Part c (4 sessions): Prof.dr. W.H.M. Zijm (UT)

Course description:

Part a (de Kok): Multi-echelon inventory control and supply chain management
In this part we pay attention to the modelling and analysis of supply chains. In principle we assume that a supply point only delivers to another one if this has placed an order. We compare a number of well-known order strategies. Where possible we derive optimality results. The emphasis is on the derivation of exact and approximative expressions for various performance characteristics, like costs and service levels.
Part b (Dekker): Coordination and demand differentiation in inventory control
This part deals with advanced topics in inventory control: coordinated replenishments and demand differentiation. We will first consider coordination of replenishments, both in a discrete and a continuous time case. We will treat deterministic and stochastic models, including the so-called can order policies. Next we will consider ways to differentiate between customers in supply chain networks. The first concept is to differentiate between large and small orders, the first being delivered directly from suppliers and the second from local stocking points. We will show that this concept can lower demand variability at the local stocking points and that it may also lead to a reduction in transportation costs. The second type of demand differentiation is between important and normal customers. We show that it pays of to keep some inventory for the more important customers (so-called critical level policies). We show how to prove the optimality of such policies and how optimal policies can be determined both in case of a cost optimisation and under service level restrictions. Finally we show how these concepts can be applied in supply chains and we give an application of this concept in spare parts inventory control.
Part c (Zijm): Queueing Models for Manufacturing and Logistic systems
In this part of the course, we first discuss basic queuing open and closed queuing networks, including general non-product form queuing networks. In addition, we discuss the use of (approximate) mean value analysis techniques as a tool to analyze closed queuing networks. Next, we show how general manufacturing systems, including characteristics such as set-up times, breakdowns and rework, can be modeled. Based upon these models, we treat large capacitated logistic networks, consisting of a number of production or distribution stages, separated by stock locations, where each stage is modeled as either an open or a closed queueing network.

Literature : Will be provided.
Prerequisites : None.
Examination : Take home problems.

Addresses of the lecturers:
Prof.dr. A.G. de Kok R.Dekker Prof.dr. W.H.M. Zijm
Department of Mathematics Econometric Institute University of Twente
Eindhoven University of Erasmus University Rotterdam Faculty of Mathematical Sciences
Technology P.O. Box 1738 P.O. Box 217
P.O.Box 513 3000 DR Rotterdam 7500 AE Enschede
5600 MB Eindhoven Phone: 010 - 4081364 Phone: 053 - 4894677
Phone: 040 - 2474223 E-mail: E-mail:

Last modified: Thu Oct 5 15:21:32 2000