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2014 | OriginalPaper | Chapter

4. Progressive Control Method

Author : Masayuki Matsui

Published in: Manufacturing and Service Enterprise with Risks II

Publisher: Springer Japan

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Abstract

Some traditional methods of inventory control are statistical approaches that cannot deal with real demand fluctuations in modern society. In this chapter, we develop a look-ahead method for on-demand supply by using the pull-type progressive control method and apply it to inventory control in each stage of the supply chain. The presented method is an innovative/stochastic approach to supply chain control that provides an effective tool for demand-to-supply SCM in the RFID age (medium control tool). The key concept is the introduction of moving-standard inventory using the newsvendor problem and Matsui’s logic for its look-ahead. Several case studies are presented using the ODICS software, which is employed by wholesalers, distributors, and manufacturers, and notable reductions in inventory are shown in all cases.

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Title: Progressive Control Method
Author: Masayuki Matsui
Publisher: Springer Japan
Book: Manufacturing and Service Enterprise with Risks II
Print ISBN: 978-4-431-54618-4

Electronic ISBN: 978-4-431-54619-1

Copyright Year: 2014
DOI: https://doi.org/10.1007/978-4-431-54619-1_4