Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis

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MARC, Ivan ;BERLEC, Tomaž  .
Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis. 
Strojniški vestnik - Journal of Mechanical Engineering, [S.l.], v. 69, n.7-8, p. 317-325, may 2023. 
ISSN 0039-2480.
Available at: <https://www.sv-jme.eu/article/inventory-risk-decision-making-techniques-using-customer-behavior-analysis/>. Date accessed: 24 apr. 2024. 
doi:http://dx.doi.org/10.5545/sv-jme.2023.577.
Marc, I., & Berlec, T.
(2023).
Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis.
Strojniški vestnik - Journal of Mechanical Engineering, 69(7-8), 317-325.
doi:http://dx.doi.org/10.5545/sv-jme.2023.577
@article{sv-jmesv-jme.2023.577,
	author = {Ivan  Marc and Tomaž   Berlec},
	title = {Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis},
	journal = {Strojniški vestnik - Journal of Mechanical Engineering},
	volume = {69},
	number = {7-8},
	year = {2023},
	keywords = {lean production; customer demand; risk simulation; inventory optimisation; },
	abstract = {More recent research shows the significant impact of accurate demand forecasting on the operation of supply chain system and thus on the performance of the company. Inventories in the production process could represent waste, which results in higher storage costs and consequently a higher product price, which in turn reduces company's competitiveness on the market. Nevertheless, a company must implement a lean production process and consequently carefully control storage and inventory costs. The introduction of a lean production process is closely linked to the risk of stock-outs, and knowledge of this risk in relation to customer habits is therefore a useful piece of information for the line manager's decision-making. This paper will present a mathematical model that relates customer demand for a product to the inventory level in the warehouse or between the work operations of the production process and the risk of potential penalties that arises with the introduction of a lean production process. With this model we can simulate, how to improve the production processes with still acceptable risk, with the goal of achieving a balance between stocks and the leanness of the production process. The paper demonstrates the use of a mathematical model on a concrete example from practice for risk simulation when choosing different production scenarios resulting from changed customer behaviour.},
	issn = {0039-2480},	pages = {317-325},	doi = {10.5545/sv-jme.2023.577},
	url = {https://www.sv-jme.eu/article/inventory-risk-decision-making-techniques-using-customer-behavior-analysis/}
}
Marc, I.,Berlec, T.
2023 May 69. Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis. Strojniški vestnik - Journal of Mechanical Engineering. [Online] 69:7-8
%A Marc, Ivan 
%A Berlec, Tomaž  
%D 2023
%T Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis
%B 2023
%9 lean production; customer demand; risk simulation; inventory optimisation; 
%! Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis
%K lean production; customer demand; risk simulation; inventory optimisation; 
%X More recent research shows the significant impact of accurate demand forecasting on the operation of supply chain system and thus on the performance of the company. Inventories in the production process could represent waste, which results in higher storage costs and consequently a higher product price, which in turn reduces company's competitiveness on the market. Nevertheless, a company must implement a lean production process and consequently carefully control storage and inventory costs. The introduction of a lean production process is closely linked to the risk of stock-outs, and knowledge of this risk in relation to customer habits is therefore a useful piece of information for the line manager's decision-making. This paper will present a mathematical model that relates customer demand for a product to the inventory level in the warehouse or between the work operations of the production process and the risk of potential penalties that arises with the introduction of a lean production process. With this model we can simulate, how to improve the production processes with still acceptable risk, with the goal of achieving a balance between stocks and the leanness of the production process. The paper demonstrates the use of a mathematical model on a concrete example from practice for risk simulation when choosing different production scenarios resulting from changed customer behaviour.
%U https://www.sv-jme.eu/article/inventory-risk-decision-making-techniques-using-customer-behavior-analysis/
%0 Journal Article
%R 10.5545/sv-jme.2023.577
%& 317
%P 9
%J Strojniški vestnik - Journal of Mechanical Engineering
%V 69
%N 7-8
%@ 0039-2480
%8 2023-05-30
%7 2023-05-30
Marc, Ivan, & Tomaž   Berlec.
"Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis." Strojniški vestnik - Journal of Mechanical Engineering [Online], 69.7-8 (2023): 317-325. Web.  24 Apr. 2024
TY  - JOUR
AU  - Marc, Ivan 
AU  - Berlec, Tomaž  
PY  - 2023
TI  - Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis
JF  - Strojniški vestnik - Journal of Mechanical Engineering
DO  - 10.5545/sv-jme.2023.577
KW  - lean production; customer demand; risk simulation; inventory optimisation; 
N2  - More recent research shows the significant impact of accurate demand forecasting on the operation of supply chain system and thus on the performance of the company. Inventories in the production process could represent waste, which results in higher storage costs and consequently a higher product price, which in turn reduces company's competitiveness on the market. Nevertheless, a company must implement a lean production process and consequently carefully control storage and inventory costs. The introduction of a lean production process is closely linked to the risk of stock-outs, and knowledge of this risk in relation to customer habits is therefore a useful piece of information for the line manager's decision-making. This paper will present a mathematical model that relates customer demand for a product to the inventory level in the warehouse or between the work operations of the production process and the risk of potential penalties that arises with the introduction of a lean production process. With this model we can simulate, how to improve the production processes with still acceptable risk, with the goal of achieving a balance between stocks and the leanness of the production process. The paper demonstrates the use of a mathematical model on a concrete example from practice for risk simulation when choosing different production scenarios resulting from changed customer behaviour.
UR  - https://www.sv-jme.eu/article/inventory-risk-decision-making-techniques-using-customer-behavior-analysis/
@article{{sv-jme}{sv-jme.2023.577},
	author = {Marc, I., Berlec, T.},
	title = {Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis},
	journal = {Strojniški vestnik - Journal of Mechanical Engineering},
	volume = {69},
	number = {7-8},
	year = {2023},
	doi = {10.5545/sv-jme.2023.577},
	url = {https://www.sv-jme.eu/article/inventory-risk-decision-making-techniques-using-customer-behavior-analysis/}
}
TY  - JOUR
AU  - Marc, Ivan 
AU  - Berlec, Tomaž  
PY  - 2023/05/30
TI  - Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis
JF  - Strojniški vestnik - Journal of Mechanical Engineering; Vol 69, No 7-8 (2023): Strojniški vestnik - Journal of Mechanical Engineering
DO  - 10.5545/sv-jme.2023.577
KW  - lean production, customer demand, risk simulation, inventory optimisation, 
N2  - More recent research shows the significant impact of accurate demand forecasting on the operation of supply chain system and thus on the performance of the company. Inventories in the production process could represent waste, which results in higher storage costs and consequently a higher product price, which in turn reduces company's competitiveness on the market. Nevertheless, a company must implement a lean production process and consequently carefully control storage and inventory costs. The introduction of a lean production process is closely linked to the risk of stock-outs, and knowledge of this risk in relation to customer habits is therefore a useful piece of information for the line manager's decision-making. This paper will present a mathematical model that relates customer demand for a product to the inventory level in the warehouse or between the work operations of the production process and the risk of potential penalties that arises with the introduction of a lean production process. With this model we can simulate, how to improve the production processes with still acceptable risk, with the goal of achieving a balance between stocks and the leanness of the production process. The paper demonstrates the use of a mathematical model on a concrete example from practice for risk simulation when choosing different production scenarios resulting from changed customer behaviour.
UR  - https://www.sv-jme.eu/article/inventory-risk-decision-making-techniques-using-customer-behavior-analysis/
Marc, Ivan, AND Berlec, Tomaž .
"Inventory Risk Decision-Making Techniques Using Customer Behaviour Analysis" Strojniški vestnik - Journal of Mechanical Engineering [Online], Volume 69 Number 7-8 (30 May 2023)

Authors

Affiliations

  • University of Ljubljana, Faculty of Mechanical Engineering, Slovenia 1
  • University of Ljubljana, Faculty of echanical Engineering, Slovenia 2

Paper's information

Strojniški vestnik - Journal of Mechanical Engineering 69(2023)7-8, 317-325
© The Authors 2023. CC BY 4.0 Int.

https://doi.org/10.5545/sv-jme.2023.577

More recent research shows the significant impact of accurate demand forecasting on the operation of supply chain system and thus on the performance of the company. Inventories in the production process could represent waste, which results in higher storage costs and consequently a higher product price, which in turn reduces company's competitiveness on the market. Nevertheless, a company must implement a lean production process and consequently carefully control storage and inventory costs. The introduction of a lean production process is closely linked to the risk of stock-outs, and knowledge of this risk in relation to customer habits is therefore a useful piece of information for the line manager's decision-making. This paper will present a mathematical model that relates customer demand for a product to the inventory level in the warehouse or between the work operations of the production process and the risk of potential penalties that arises with the introduction of a lean production process. With this model we can simulate, how to improve the production processes with still acceptable risk, with the goal of achieving a balance between stocks and the leanness of the production process. The paper demonstrates the use of a mathematical model on a concrete example from practice for risk simulation when choosing different production scenarios resulting from changed customer behaviour.

lean production; customer demand; risk simulation; inventory optimisation;