THE OPTIMAL PROCUREMENT STRATEGY OF AVIATION MILITARY PRODUCTS: A CASE STUDY
Since aviation military products are usually of high value, to keep a high inventory level will lead to a large investment on inventory holding cost.In this paper, we investigated the inventory system of China National Aero-Technology Import and Export Corporation (CATIC) and proposed some inventory policies to improve their inventory management.Specifically, based on the marketing and purchasing data, we classified the products into two categories.The first category includes the products whose selling lead time is longer than the ordering lead time, which can be purchased according to the accepted order without holding any inventory.For products in another category, we adapted an inventory model to the real-world inventory system where the ordering cost is small enough and therefore ignored.Thus, it is very important for aviation military trading firms to optimize the inventory policy.Based on the real data of products we predicted the demand firstly and built a model yielding the optimal inventory policy of the order quantity and the order time.We also analysed how the order quantity affects the fill rate and the in-stock probability and the results indicates that PTO and PTS strategy can be used together to maximize service level for customers.
Inventory Aviation Military Products Supply Uncertainty Optimal Order Quantity Optimal Order Time
Renqian Zhang Yan Gu Yanliang Wu Hexin Wang Zitong Wang
School of Economics and Management, Beihang University, Beijing 100191, China
国际会议
The 12th International Conference on Industrial Management(第十二届工业管理国际会议)
成都
英文
419-425
2014-09-03（万方平台首次上网日期，不代表论文的发表时间）