Preface |
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1 Supply Chain Management |
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1.1 What do we mean by logistics? |
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1.1.1 Plan of the chapter |
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1.2 Structure of production/distribution networks |
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1.3 Competition factors, cost drivers, and strategy |
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1.3.1 Competition factors |
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1.4 The role of inventories |
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1.4.1 A classical model: Economic order quantity |
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1.4.2 Capacity-induced stock |
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1.5 Dealing with uncertainty |
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1.5.1 Setting safety stocks |
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1.5.2 A two-stage decision process: Production planning in an assemble-to-order environment |
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1.5.3 Inventory deployment |
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1.6 Physical flows and transportation |
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1.7 Information flows and decision rights |
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1.8 Time horizons and hierarchical levels |
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1.10 Quantitative models and methods |
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2 Network Design and Transportation |
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2.1 The role of intermediate nodes in a distribution network |
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2.1.1 The risk pooling effect: reducing the uncertainty level |
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2.1.2 The role of distribution centers and transit points in transportation optimization |
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2.2 Location and flow optimization models |
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2.2.1 The transportation problem |
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2.2.2 The minimum cost flow problem |
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2.2.3 The plant location problem |
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2.2.4 Putting it all together |
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2.3 Models involving nonlinear costs |
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W.2.4 Continuous-space location models |
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W.2.5 Retail-store location models |
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3 Forecasting |
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3.2 The variable to be predicted |
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3.2.1 The forecasting process |
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3.3 Metrics for forecast errors |
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3.3.2 Mean Absolute Deviation |
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3.3.3 Root Mean Square Error |
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3.3.4 Mean Percentage Error and Mean Absolute Percentage Error |
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3.3.6 Theil's U statistic |
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3.3.7 Using metrics of forecasting accuracy |
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3.4 A classification of forecasting methods |
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3.5.3 Setting the parameter |
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3.5.4 Drawbacks and limitations |
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3.6 Simple exponential smoothing |
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3.6.3 Setting the parameter |
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3.6.5 Drawbacks and limitations |
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3.7 Exponential Smoothing with Trend |
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3.7.3 Setting the parameters |
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3.7.5 Drawbacks and limitations |
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3.8 Exponential smoothing with seasonality |
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3.8.3 Setting the parameters |
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3.8.5 Drawbacks and limitations |
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3.9 Smoothing with seasonality and trend |
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3.10 Simple linear regression |
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3.10.1 Setting up data for regression |
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3.11 Forecasting models based on multiple regression |
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3.12 Forecasting demand for new products |
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3.12.1 The Delphi method and the committee process |
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3.12.2 Lancaster model: forecasting new products through product features |
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3.12.3 The early sales model |
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3.13.1 Limitations and drawbacks |
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4 Inventory Management with Deterministic Demand |
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4.2 Economic Order Quantity |
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4.3 Robustness of EOQ model |
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4.4 Case of LT > 0: the (Q, R) model |
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4.5 Case of finite replenishment rate |
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4.6.1 The case of shared ordering costs |
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4.6.2 The multi-item case with a constraint on ordering capacity |
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4.7 Case of nonlinear costs |
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4.8 The case of variable demand with known variability |
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5 Inventory Control: The Stochastic Case |
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5.2 The newsvendor problem |
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5.2.1 Extensions of the newsvendor problem |
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5.3 Multi-period problems |
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5.4 Fixed quantity: the (Q, R) model |
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5.4.1 Optimization of the (Q,R) model in case the stockout cost depends on the size of the stockout |
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5.4.2 (Q,R) system: case of constraint on the type II service level |
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5.4.3 (Q, R) system: case of constraint on type I service level |
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5.5 Periodic review: S and (s,S) policies |
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5.5.8 Optimization of the (Q,R) model when the cost of a stockout depends on the occurrence of a stockout |
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6 Managing Inventories in Multiechelon Supply Chains |
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6.2 Managing multiechelon chains: Installation vs. Echelon Stock |
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6.2.1 Features of Installation and Echelon Stock logics |
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6.3 Coordination in the supply chain: the Bullwhip effect |
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6.4 A linear distribution chain with two echelons and certain demand |
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6.5 Arborescent chain: transit point with uncertain demand |
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6.6 A two-echelon supply chain in case of stochastic demand |
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7 Incentives in the Supply Chain |
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7.2 Decisions on price: double marginalization |
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7.2.1 The first best solution: the vertically integrated firm |
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7.2.2 The vertically disintegrated case: independent manufacturer and retailer |
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7.2.3 A way out: designing incentive schemes |
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7.3 Decision on price in a competitive environment |
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7.3.1 The vertically disintegrated supply chain: independent manufacturer and retailer. |
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7.4 Decision on inventories: the newsvendor problem |
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7.4.1 The first best solution: the vertically integrated firm |
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7.4.2 The vertically disintegrated case: independent manufacturer and retailer |
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7.4.3 A way out: designing incentives and reallocating decision rights |
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7.5 Decision on effort to produce and sell the product |
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7.5.1 The first best solution: the vertically integrated firm |
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7.5.2 The vertically disintegrated case: independent retailer and manufacturer |
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7.5.3 A way out: designing incentive schemes. |
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7.5.4 The case of efforts both at the upstream and downstream stage |
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8 Vehicle Routing |
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8.1 Network routing problems: The TSP |
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8.1.1 Other network routing problems |
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8.2 Solution methods for symmetric TSP |
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8.2.1 Nearest-neighbor heuristic |
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8.2.2 Insertion-based heuristics |
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8.2.3 Local search methods |
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8.3 Solution methods for basic VRP |
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8.3.1 Constructive methods for VRP |
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8.3.2 Decomposition methods for VRP: cluster first, route second |
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8.4 Additional features of real-life VRP |
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8.4.1 Constructive methods for the VRP with time windows |
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Appendix A A Quick Tour of Probability and Statistics |
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A.1 Sample space, events, and probability |
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A.2 Conditional probability and independence |
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A.3 Discrete random variables |
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A.3.1 A few examples of discrete distributions |
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A.4 Continuous random variables |
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A.4.1 Some continuous distributions |
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A.5 Jointly distributed random, variables |
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A.6 Independence, covariance, and conditional expectation |
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A.6.1 Independent random variables |
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A.6.2 Covariance and correlation |
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A.6.3 Distributions obtained from the normal and the central limit theorem |
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A.6.4 Conditional expectation |
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A.8.1 Sample covariance and correlation |
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A.8.2 Confidence intervals |
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A.9.1 An example of a nonparametric test: the chi-square test |
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A.9.2 Testing hypotheses about the difference in the mean of two populations |
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A.10 Simple linear regression |
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A.10.1 Best fitting by least squares |
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A.10.2 Analyzing properties of regression estimators |
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A.10.3 Confidence intervals and hypothesis testing for regression estimators |
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A.10.4 Performance measures for linear regression |
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A.10.5 Verification of the underlying assumptions |
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A.10.6 Using linear regression to estimate nonlinear relationships |
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A.11 Multiple linear regression |
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Appendix B An Even Quicker Tour in Mathematical Programming |
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B.1 Role and limitations of optimization models |
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B.3 Convex sets and functions |
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B.4 Nonlinear programming |
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B.4.1 The case of inequality constraints |
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B.4.2 An economic interpretation of Lagrange multipliers: shadow prices |
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B.6 Integer linear programming |
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B.6.1 Branch and bound methods |
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B.6.2 Model building in integer programming |
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B.7 Elements of multiobjective optimization |
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Index |
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