Installation-based Inventory systems

Installation-based inventory systems. Consider the installation-based inventory system with the base stock levels (10.14) and (10.17). Aviv (2002b) provides the following expression for the long-run average costs as fiinctions of the safety-stock parameters 7 and 7 ... 

Rockwell Automation also maintains a stockpile of spares at its facility in Memphis, Tennessee, equivalent to about 20 percent to 25 percent of the installed base to permit 24-hour turnaround for spares requests. The inventory of control system spares consists of about 75 percent of the installed part types. This includes a recent discovery of a cache of I/O parts at UMCDF, which will allow the inventory to provide for most part types. Any shortages are filled from Rockwell Automation s general spares supply that it uses for all its customers. Currently, about 90 percent of the CMA/WGI control system spares inventory have been retested and recertified. 

The local site inventories of control system spares are specified to be at least 10 percent of the installed base, with a minimum of two for each replaceable part. However, sites are maintaining their own supplies of additional noncertified control system spare parts and this is not well coordinated with the central spares control system at Rockwell Automation. The spares inventory control systems vary from site to site, and the committee noted that there is no comprehensive accounting of the inventory levels of spares, nor of the testing and certification status of spares, at some sites. This can result in program inefficiencies and cost penalties. 

In his first model, named locally-managed inventory (LMI) system, Aviv (2002a) studies a supply chain structure in which the members of the supply chain do not share their observations of explanatory market signals (the J-variables). Inventory is managed according to the installation-based MMSE adaptive base-stock policy, with target levels... 

In this section we describe a way for finding the pair of safety-stock parameters 7 and 7, that minimize the long-run average total supply chain cost. We assume that installation-based policies are used. The extension of the discussion to echelon-based policies is relatively easy, given the observations made in 6.1.2. We refer to a supply chain in which these optimal safety stocks are used, as a coordinated two-level inventory system. We assume that h < and set = 0. Aviv (2002b) shows the following ... 

First, note that several authors have studied EOQ-based systems with a single warehouse serving N retailers. As indicated in Simchi-Levi et al. (2008), a solution based on powers-of-two ordering (see Jackson et al., 1985) actually employs an approach that is similar—in essence, at least—to the one we presented earlier. The solution developed in Simchi-Levi et al. (2008), for example, is based on computing a "base" inventory cycle length, and then determining good powers-of-two multiples of that value for each installation in the system. 

The design basis, especially safety features that are built into the installation, must be documented. Management of change programs must preserve and keep the base record current and protect against degradation or elimination of safety features, including such measures as maximum intended inventories and passive protection systems. 

The results of the national GHG emission inventory (with 2001 as the last year available) and statistical data for the domestic energy system created the base for calculating CO2 emission from ETS installations. The estimation was based not only on the results of the emission inventory, but also on energy statistics. In case of autoproducers of electricity or heat, their fuel consumption is classified according to the final consumption of a given industrial sector. Emissions were calculated as a sum of emissions from sectors covered by the ETS (e.g. cement) and emission from autoproducers (heating and CHP plants) in sectors not covered directly by Annex I of the Directive (e.g. sugar and chemical industry). 

The philosophy of fire protection is based fundamentally on the prevention of fire by choice of materials and by minimization of inventory of incendiary material. Once a fire occurs (going on in the scenario), the second measure is to prevent the spread of fire by the design of fire sectors and the use of fire-resistant barriers. Thirdly, one has to detect the fire, usually by means of a fire alarm system. Finally, no doubt, one needs organization, staff, and equipment for fire extinguishing by installed and mobile means. 

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