Meta-inventory management decisions: A theoretical model

IF 9.8 1区 工程技术 Q1 ENGINEERING, INDUSTRIAL
Jianhua Xiao , Siyuan Ma , Shuyi Wang , George Q. Huang
{"title":"Meta-inventory management decisions: A theoretical model","authors":"Jianhua Xiao ,&nbsp;Siyuan Ma ,&nbsp;Shuyi Wang ,&nbsp;George Q. Huang","doi":"10.1016/j.ijpe.2024.109339","DOIUrl":null,"url":null,"abstract":"<div><p>The manufacturing industry leverages the traceability and visibility of Industrial 4.0 to integrate digital and physical twins for solving the intricacy of a production system. Physical entities can be converted into digital twins with smart IoT (Internet of Things) devices and computational techniques. Research efforts have generally focused on the development of digital twin models for basic practical applications. Advanced applications of digital twins have not been widely reported. An innovative use of digital twins for inventory management has only been analysed theoretically and reported as meta-inventory management for the first time by Wang and Huang (2023). This paper extends the novel concept of meta-inventory by using a theoretical Newsvendor model for original equipment manufacturing (OEM) and own brand manufacturing (OBM) factories. The impacts of meta-inventory on both supply chain members, including the factory and its downstream retailer, are investigated through two kinds of response models (e.g., hybrid and separate response models). Analytical and numerical results show that a factory achieves better performance by using a separate model since it clarifies the responsibility of digital twins. The hybrid response model holds a higher proportion of digital inventory, but its final profits are less than that in the separate model due to fewer orders and higher prices and costs of uncertainty. OBM can better leverage the advantage of digital twins than OEM. Also, both supply chain members benefit from the implementation of meta-inventory out of profit increase, price reduction, and risk hedging. This research provides guidance for manufacturing sites to implement digital twins and reduce their concerns on investing in meta-inventory.</p></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"275 ","pages":"Article 109339"},"PeriodicalIF":9.8000,"publicationDate":"2024-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Production Economics","FirstCategoryId":"5","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0925527324001968","RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ENGINEERING, INDUSTRIAL","Score":null,"Total":0}
引用次数: 0

Abstract

The manufacturing industry leverages the traceability and visibility of Industrial 4.0 to integrate digital and physical twins for solving the intricacy of a production system. Physical entities can be converted into digital twins with smart IoT (Internet of Things) devices and computational techniques. Research efforts have generally focused on the development of digital twin models for basic practical applications. Advanced applications of digital twins have not been widely reported. An innovative use of digital twins for inventory management has only been analysed theoretically and reported as meta-inventory management for the first time by Wang and Huang (2023). This paper extends the novel concept of meta-inventory by using a theoretical Newsvendor model for original equipment manufacturing (OEM) and own brand manufacturing (OBM) factories. The impacts of meta-inventory on both supply chain members, including the factory and its downstream retailer, are investigated through two kinds of response models (e.g., hybrid and separate response models). Analytical and numerical results show that a factory achieves better performance by using a separate model since it clarifies the responsibility of digital twins. The hybrid response model holds a higher proportion of digital inventory, but its final profits are less than that in the separate model due to fewer orders and higher prices and costs of uncertainty. OBM can better leverage the advantage of digital twins than OEM. Also, both supply chain members benefit from the implementation of meta-inventory out of profit increase, price reduction, and risk hedging. This research provides guidance for manufacturing sites to implement digital twins and reduce their concerns on investing in meta-inventory.

元库存管理决策:一个理论模型
制造业利用工业 4.0 的可追溯性和可视性,整合数字孪生和物理孪生,以解决生产系统错综复杂的问题。物理实体可通过智能物联网设备和计算技术转化为数字孪生。研究工作一般都集中在为基本实际应用开发数字孪生模型上。数字孪生的高级应用尚未得到广泛报道。只有 Wang 和 Huang(2023 年)首次从理论上分析了数字孪生在库存管理中的创新应用,并将其报告为元库存管理。本文通过使用原始设备制造(OEM)和自有品牌制造(OBM)工厂的新闻供应商(Newsvendor)理论模型,扩展了元库存的新概念。本文通过两种响应模型(如混合响应模型和单独响应模型)研究了元库存对供应链成员(包括工厂及其下游零售商)的影响。分析和数值结果表明,工厂使用独立模型能取得更好的绩效,因为它明确了数字双胞胎的责任。混合响应模型持有较高比例的数字库存,但由于订单较少、价格和不确定性成本较高,其最终利润低于独立模型。与原始设备制造商相比,OBM 能更好地利用数字双胞胎的优势。此外,实施元库存后,供应链成员都能从利润增加、价格下降和风险对冲中获益。这项研究为生产基地实施数字孪生提供了指导,减少了他们对投资元库存的顾虑。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
International Journal of Production Economics
International Journal of Production Economics 管理科学-工程:工业
CiteScore
21.40
自引率
7.50%
发文量
266
审稿时长
52 days
期刊介绍: The International Journal of Production Economics focuses on the interface between engineering and management. It covers all aspects of manufacturing and process industries, as well as production in general. The journal is interdisciplinary, considering activities throughout the product life cycle and material flow cycle. It aims to disseminate knowledge for improving industrial practice and strengthening the theoretical base for decision making. The journal serves as a forum for exchanging ideas and presenting new developments in theory and application, combining academic standards with practical value for industrial applications.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信