• Transshipment Models
    destinations, or some combination of these alternatives. Therefore we can apply the transshipment models to inventory applications because deals with a source and destinations and they are similar. The transportation model is an example of decision making under certainty because the sources and...
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  • Mat 540
    transshipment models being an extension of the transportation model where intermediate points, known as transshipment points, are added between sources and destinations. Activity – Discussion on transshipment problems o Can we apply transshipment models to inventory applications? Why or why not? o Is the...
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  • Student
    demand is always filled from other locations' inventory (Evers 1996: 129). The PE model of Evers and Beier (1993) can be utilized to determine the percentage reduction in safety stocks from nonemergency transshipments without considering the effect on cycle stocks and transportation costs (Evers 1996...
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  • Supply Chain Modeling
    analyze the performance of an integrated supply chain network so that optimization techniques can be employed to improve customer service and reduce inventory cost; and (3) how to evaluate dynamic supply chain networks and obtain a comprehensive understanding of decision-making issues related to supply...
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  • Managing Engineering and Technology
    Decision Making 81 Let us consider what this model implies and the analytical tools we might choose to use under each of our three classes of decision making. Decision Making under Certainty Decision making under certainty implies that we are certain of the future state of nature (or we assume...
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  • Quantitative Technique for Business
    Decision-Making Environments * Decision Making under Uncertainty * Decision Making under Risk * Decision Trees * Using TreePlan to solve Decision Tree Problems with Excel * Classroom Exercise * Discussion based on Classroom activity (based on excel examples and problems...
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  • Management Science
    the longest path?); (why do we not consider the problem of longest path for a generic network?); (how to find the longest path?) * How to model a maintenance decision-making problem as a network optimization problem: the “art” of modeling a problem as a network optimization problem – a node to...
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  • Vendor Managed Inventory
    routing and inter facility transshipments. Many commercial systems are available to address these problems, and strategic decision systems can be used to determine, for example, the best location for a new distribution center or the advantages and disadvantages of brining another retailer into a...
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  • Supply Chain Management
    customer (a retail outlet, for example) has to wait some additional time for inbound transportation to the warehouse? Well, yes, but often the added certainty of strictly scheduled deliveries offsets any uncertainty associated with longer lead times (more on this later), and there is no loss to the...
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  • logistic management
    vary around the average  Rule of thumb for Normal distribution with mean  and standard deviation  : About 95% of the probability mass is within the interval [ -2 ,  +2 ] How do inventories behave under uncertainty? In absence of uncertainty, we will replenish our inventories if the...
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  • Miss
    regret would build the large facility. ❐ DECISION MAKING UNDER RISK Here we assume that the manager can list the events and estimate their probabilities. The manager has less information than with decision making under certainty but more information than with decision making under uncertainty...
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  • Management Science
    computer-based quantitative models for logistical planning and mobilization. Why is Management Science Important? It is important for a company's profitability, efficiency, and high quality decision making process. Famous practitioners for Management science: The Institute for Operations...
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  • operations research
    to complete uncertainty hence one can think of decision making under certainty (DMUC) and decision making under uncertainty (DMUU) on the two extreme points on a scale. The region that falls between these extreme points corresponds to the concept of probabilistic models, and referred as decision...
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  • Decision Making Tools
    three decision-making environments: • • • Decision making under uncertainty Decision making under risk Decision making under certainty Decision Making Under Uncertainty When there is complete uncertainty as to which state of nature in a decision environment may occur (that is, when we cannot even...
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  • Managerial Skill
    manager have when making a decision under conditions of uncertainty? *7. What three characteristics exist for a manager when he or she is making decisions under conditions of ambiguity? *8. What is the basis for the classical model of decision making? *9. Why is the classical model of decision...
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  • Iipm Course Structure
    ) • Simple case of two machines and their allocation through graphical techniques 6. REPLACEMENT MODEL (2 HRS) 7. DECISION THEORY (4 HRS) • Decision making and the parameters involved, including probabilistic situations • Decision making under certainty, risk and uncertainty; criteria for...
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  • Introduction to Management Science
    expressions. Such models are referred to as mathematical models and are a critical part of any quantitative approach to decision making. For example, the total profit from the sale of a product can be determined by multiplying the profit per unit by the quantity sold. If we let x represent the number of...
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  • Speech
    returns. Uncertainties are risks. They are the unknowns associated with future events. The decisions we make today create the risks that we must manage tomorrow. Risk management and decision-making is effectively the same thing. Both involve the dismantling of choices so as to understand...
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  • managing sypply chain risk
    inventory and inadequate cash liquidity when demand is uncertain. 15.1 Introduction In this chapter we consider stochastic programming for making optimal supply chain planning decisions under uncertainty. In particular, we extend the linear programming (LP) model of deterministic supply-chain...
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  • 5667
    situation. Thus every decision making situation falls into one of the four categories that exist along a certainty continuum namely Certainty, Risk, Uncertainty and Ambiguity 1. Certainty: This is a state of certainty that exists only when the decision maker knows the available alternatives and...
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