Bayesian analysis of the production smoothing and inventory adjustment behavior: A case study in electronic parts and components industry

Chien Wen Shen, Chao Neng Wang

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We applied the production smoothing models of inventories taking into consideration the flexible accelerator hypothesis to examine the characteristics of production smoothing and inventory adjustment. Bayesian estimation approach was also developed to approximate the structural parameters of production smoothing models for reliable and efficient inference. A case study in the electronic parts and components industry was investigated also. Findings suggest that anticipated sales for integrated circuits and light emitting diodes significantly and positively influence equilibrium levels of inventories. Although the degree of production smoothing is minor for electronic capacitors, it is moderate for integrated circuits, foundry wafers and LED chips. The case study illustrates the applicability of the proposed Bayesian approach.

Original languageEnglish
Title of host publication2016 4th International Symposium on Computational and Business Intelligence, ISCBI 2016
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages54-58
Number of pages5
ISBN (Electronic)9781509034888
DOIs
StatePublished - 14 Nov 2016
Event4th International Symposium on Computational and Business Intelligence, ISCBI 2016 - Olten, Switzerland
Duration: 5 Sep 20167 Sep 2016

Publication series

Name2016 4th International Symposium on Computational and Business Intelligence, ISCBI 2016

Conference

Conference4th International Symposium on Computational and Business Intelligence, ISCBI 2016
Country/TerritorySwitzerland
CityOlten
Period5/09/167/09/16

Keywords

  • Bayesian estimation
  • flexible accelerator
  • inventory adjustment
  • production smoothing

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