Nothing
#' R_s_S_dynamic
#'
#' Simulating a Min Max periodic policy or also called R,s,S policy, R represents the ordering/review period,
#' the Max is dynamically calculated based on a forecast vector. .
#'
#' The Function takes a demand vector, mean of demand ,sd,lead time and requested service level to simulate an inventory system,
#' orders are lost if inventory level is less than requested demand, also ordering is made at
#' day t+1, metrics like item fill rate and cycle service level are calculated.
#' the min is calculated based on a normal distribution or a poisson distribution, also min can be set manually.
#' Max - inventory position is ordered whenever inventory position reaches min at the priod of review
#' @param demand A vector of demand in N time periods.
#' @param forecast the forecast vector of equal n periods to demand.
#' @param leadtime lead time from order to arrival (order to delivery time)
#' @param Review_period Integer, the number of periods where every order is allowed to be made.
#' @param service_level cycle service level requested
#' @param initial_inventory_level integer,Default is False and simulation starts with min as inventory level
#' @param Min_to_max numeric, the ratio of min to max calculation , default 0.6 but can be changed manually.
#' @param min integer,Default is False and min is calculated based on Min_to_max but can be set manually.
#' @param one_step_forecast logical, Default is true where demand lead time is calcluated as(forecast at period t * leadtime)
#' while if False, demand
#' leadtime is calculated as (forecast of period t to forecast of period t+leadtime-1)
#' @param shortage_cost numeric,Default is FALSE shortage cost per unit of sales lost
#' @param inventory_cost numeric,Default is FALSE inventory cost per unit.
#' @param ordering_cost numeric,Default is FALSE ordering cost for every time an order is made.
#' @param distribution distribution to calculate safety stock based on demand distribution, current choices are 'normal'
#' 'poisson','gamma' and negative binomial 'nbinom'
#' @param error_metric metric is currently 'rmse' and 'mae', this calculates the error from period 1 to period t unless metric_windows is set.
#' this contributes to the calculation of saftey stock. default is 'rmse'
#' @param metric_windows integer, for exammple if it is set to 4 rmse for t is calculated from t-1 to t-4,default is FALSE
#' @param smoothing_error number between 0 and 1 to smooth the error as alpha x error[t] + (1-alpha)x error t-1, if metric_windows is used, smoothing
#' error has to be FALSE
#' @param plot Logical, Default is False, if true a plot is generated
#' @param Backlogs Logical, Default is False, if true inventory level accounts for previous lost orders
#' @importFrom stats dnorm
#' @importFrom stats lm
#' @importFrom stats median
#' @importFrom stats optim
#' @importFrom stats optimize
#' @importFrom stats pnorm
#' @importFrom stats ppois
#' @importFrom stats predict
#' @importFrom stats qnorm
#' @importFrom stats qpois
#' @importFrom stats qgamma
#' @importFrom stats sd
#' @import ggplot2
#' @importFrom magrittr %>%
#' @importFrom plotly ggplotly
#' @return a list of two date frames, the simulation and the metrics. the metrics are (1) shortage cost, (2) inventory cost which
#' is the cost of one unit of inventory in one period,(3) which is the average inventory level per period, (4) total orders made in the
#' simulation, (5) ordering cost if any, (6) total lost sales if any,(7) average ordering quantity across all orders,(8) ordering
#' interval which is the average time between each order,(9) item fill rate,(10) cycle service level, (11) average saftey stock in each
#' period,(12) the average sales in every order,(13) overall root mean square error, (14) overall mean absolute error,
#' (14) overall mean error,(15) overall mean absolute percentage error,(16) the average flowttime which is the average time
#' a unit spends on inventory and (17) the demand classification.
#' @author "haytham omar email: <haytham@rescaleanalytics.com>"
#' @export
#' @examples
#'R_s_S_dynamic(demand = rpois(90,9),forecast = rpois(90,9),service_level = 0.9,
#' leadtime = 10,Review_period = 10,min = 70,Backlogs=TRUE)
R_s_S_dynamic<-function (demand,forecast,leadtime, Review_period,service_level,initial_inventory_level=FALSE,
Min_to_max=0.6,min=FALSE,one_step_forecast=TRUE, shortage_cost = FALSE,
inventory_cost = FALSE, ordering_cost = FALSE,distribution= 'normal',
error_metric= 'mse',metric_windows= FALSE,smoothing_error=0.2,plot=FALSE,Backlogs=TRUE)
{
inventory_level<-NULL
period<-NULL
L= leadtime
N = length(demand)
demand <- c(0, demand)
forecast<- c(0,forecast)
if (one_step_forecast== TRUE){
dl<- forecast*(leadtime+Review_period)
} else {
dl<- rep(NA,length(demand))
for (i in 1: length(dl)){
dl[i]<- sum(forecast[i : min((i+leadtime+Review_period-1),length(dl))])
}
}
error<- demand - forecast
metric<- c(rep(NA,length(demand)))
lambda<- mean(demand)
order = rep(NA, N + 1)
I = rep(NA, N + 1)
IP = rep(NA, N + 1)
sales = rep(NA, N + 1)
recieved = rep(NA, N + 1)
order[1] = 0
if(error_metric == 'rmse'){
if (metric_windows== FALSE & smoothing_error== FALSE){
for (i in 2: length(demand)){
metric[i]<- sqrt(mean((demand[1:i-1]- forecast[1:i-1])^2,na.rm = TRUE))
}
} else if (metric_windows != FALSE & smoothing_error== FALSE) {
for (i in 2: length(demand)){
metric[i]<- sqrt(mean((demand[max((i- metric_windows),0):(i-1)]- forecast[max((i- metric_windows),0):(i-1)])^2,na.rm = TRUE))
}
}else {
for (i in 2: length(demand)){
metric[i]<- sqrt(mean((demand[i]- forecast[i])^2,na.rm = TRUE))* smoothing_error+ (1- smoothing_error)* sqrt(mean((demand[i-1]- forecast[i-1])^2,na.rm = TRUE))
}
}
}
if(error_metric == 'mae'){
if (metric_windows== FALSE & smoothing_error== FALSE){
for (i in 2: length(demand)){
metric[i]<- mean(abs(demand[1:i-1]- forecast[1:i-1]),na.rm = TRUE)
}
} else if (metric_windows != FALSE & smoothing_error== FALSE) {
for (i in 2: length(demand)){
metric[i]<- mean(abs(demand[max((i- metric_windows),0):(i-1)]- forecast[max((i- metric_windows),0):(i-1)]),na.rm = TRUE)
}
}else {
for (i in 2: length(demand)){
metric[i]<- mean(abs(demand[i]- forecast[i]),na.rm = TRUE)* smoothing_error+ (1- smoothing_error)* mean(abs(demand[i-1]- forecast[i-1]),na.rm = TRUE)
}
}
}
if(error_metric == 'mse'){
if (metric_windows== FALSE & smoothing_error== FALSE){
for (i in 2: length(demand)){
metric[i]<- mean((demand[1:i-1]- forecast[1:i-1])^2,na.rm = TRUE)
}
} else if (metric_windows != FALSE & smoothing_error== FALSE) {
for (i in 2: length(demand)){
metric[i]<- mean((demand[max((i- metric_windows),0):(i-1)]- forecast[max((i- metric_windows),0):(i-1)])^2,na.rm = TRUE)
}
}else {
for (i in 2: length(demand)){
metric[i]<- mean((demand[i]- forecast[i])^2,na.rm = TRUE)* smoothing_error+ (1- smoothing_error)* mean((demand[i-1]- forecast[i-1])^2,na.rm = TRUE)
}
}
}
classfication <- function(demand){
intervals <- function(x){
y<-c()
k<-1
counter<-0
for (tmp in (1:length(x))){
if(x[tmp]==0){
counter<-counter+1
}else{
k<-k+1
y[k]<-counter
counter<-1
}
}
y<-y[y>0]
y[is.na(y)]<-1
y
}
demand1 <- function(x){
y<-x[x!=0]
y
}
D <- demand1(demand)
ADI <- mean(intervals(demand))
CV2 <- (sd(D)/mean(D))^2
if (ADI > (4/3)){
if (CV2 > 0.5){
Type <- "Lumpy"
}else{
Type <- "Intermittent"
}
}else{
if (CV2 > 0.5){
Type <- "Erratic"
}else{
Type <- "Smooth"
}
}
return(data.frame('Type'=Type))
}
demand_class= classfication(demand)
sigmadl<- if (error_metric != 'mse'){ metric* sqrt(leadtime+Review_period)
} else {
sqrt(metric * (leadtime+Review_period))
}
if(distribution== 'normal'){
saftey_stock<- sigmadl * qnorm( service_level)
} else if(distribution== 'poisson'){
saftey_stock<- qpois(service_level, dl) - (dl)
}else if (distribution== 'gamma'){
alpha= dl ^2 / sigmadl^2
beta <- dl / sigmadl^2
saftey_stock<- qgamma(service_level,alpha,beta)-dl
saftey_stock[is.nan(saftey_stock)]<- 0
} else if (distribution== 'nbinom'){
ComputeNBDoverR <- function(x, mu_R, sigm_R){
if(sigm_R^2 <= mu_R){
sigm_R<- 1.05 * sqrt(mu_R)
}
z <- (sigm_R ^ 2) / mu_R
if (z > 1){
P0 <- (1 / z) ^ (mu_R / (z - 1))
if (x == 0){
PX <- P0
} else {
PX <- P0
for (i in 1:x){
PX = (((mu_R / (z - 1)) + i - 1) / i) * ((z - 1) / z) * PX
}
}
}
return(PX)}
saftey_stock<- rep(NA,length(dl))
for(i in 2: length(dl)){
x <- 0
supp <- ComputeNBDoverR(x, dl[i], sigmadl[i])
while (supp < service_level){
x <- x + 1
supp <- supp + ComputeNBDoverR(x, dl[i], sigmadl[i])
}
saftey_stock[i]<- max(x- dl[i],0)
}
}
Max= round(dl+saftey_stock,0)
if( min== FALSE){
min= round(Min_to_max*Max,0)
} else {
min= rep(min,length(demand))
}
min[is.na(min)]<- round(mean(min,na.rm = TRUE),0)
Max[is.na(Max)]<- round(mean(Max,na.rm = TRUE),0)
if(initial_inventory_level==FALSE){
IP[1] = I[1] = Max[1]
} else {
IP[1] = I[1] = initial_inventory_level
}
ordering_time <- rep(rep(c(0, 1), c(Review_period - 1, 1)),
length(demand))
#order[t] = max((Max[t] - IP[t - 1]) * (ordering_time[t])* (IP[t - 1] <= min[t]),0)
if(Backlogs != TRUE){
for (t in 2:(L)) {
sales[t] <- min(demand[t], I[t - 1])
I[t] <- I[t - 1] - sales[t]
order[t] = max((Max[t] - IP[t - 1]) * (ordering_time[t])* (IP[t - 1] <= min[t]),0)
IP[t] <- IP[t - 1] + order[t] - sales[t]
}
for (t in seq((L + 1), (N))) {
sales[t] = min(demand[t], I[t - 1] + order[t - L])
I[t] = I[t - 1] + order[t - L] - sales[t]
order[t] = max((Max[t] - IP[t - 1]) * (ordering_time[t])* (IP[t - 1] <= min[t]),0)
IP[t] = IP[t - 1] + order[t] - sales[t]
recieved[t] <- order[t - L]
}
}else {
backlogs = rep(NA, N + 1)
comu_backlogs = rep(NA, N + 1)
expected=rep(NA, N + 1)
order[1] = 0
sales[1] <- 0
expected[1]<- 0
backlogs[1]<- 0
comu_backlogs[1]<-0
for (t in 2:(L)) {
sales[t] <- min(demand[t], I[t - 1])
I[t] <- ifelse(I[t-1]-demand[t]- comu_backlogs[t-1]>0,I[t-1]-
demand[t]-comu_backlogs[t-1],0)
order[t] = max((Max[t] - IP[t - 1]) * (ordering_time[t])* (IP[t - 1] <= min[t]),0)
expected[t]<- expected[t-1]+ order[t-1]
backlogs[t]<- ifelse(I[t-1]< demand[t],abs(I[t-1]-demand[t]),0)
comu_backlogs[t]<- ifelse(backlogs[t]>I[t-1] | backlogs[t]>0,comu_backlogs[t-1]+backlogs[t],0)
IP[t] <- IP[t - 1] + order[t] - sales[t]
}
for (t in seq((L + 1), (N))) {
sales[t] <- min(demand[t], I[t - 1])
recieved[t] <- order[t - L]
I[t] <- ifelse(I[t-1]-demand[t]+recieved[t]- comu_backlogs[t-1]>0,I[t-1]-
demand[t]+recieved[t]-comu_backlogs[t-1],0)
order[t] = max((Max[t] - IP[t - 1]) * (ordering_time[t])* (IP[t - 1] <= min[t]),0)
expected[t]<- expected[t-1]+ order[t-1]- recieved[t]
backlogs[t]<- ifelse(I[t-1]< demand[t],abs(I[t-1]-demand[t]),0)
comu_backlogs[t]<- ifelse(backlogs[t]>I[t-1] | backlogs[t]>0,comu_backlogs[t-1]+backlogs[t],0)
IP[t] <- I[t]+ expected[t]- comu_backlogs[t]
}
}
if (Backlogs != TRUE){
data <- data.frame('period' = seq(1:(N + 1)), demand = demand, forecast=forecast,rolling_error= metric,
sales = sales, 'inventory_level' = I, inventory_position = IP,expected_demand_leadtime= dl,sigmadl= sigmadl,saftey_stock=saftey_stock,Review_period,
min = min, Max = Max, order = order, recieved = recieved)
data$lost_order <- data$demand - data$sales
} else {
data <- data.frame('period' = seq(1:(N + 1)), demand = demand, forecast=forecast,rolling_error= metric,
sales = sales, 'inventory_level' = I, inventory_position = IP,expected_demand_leadtime= dl,sigmadl= sigmadl,saftey_stock=saftey_stock,Review_period,
min = min, Max = Max, order = order, recieved = recieved,comu_backlogs=comu_backlogs)
data$lost_order <- data$demand - data$sales
}
metrics <- data.frame(shortage_cost = sum(data$lost_order,
na.rm = TRUE) * shortage_cost, inventory_cost = sum(data$inventory_level, na.rm = TRUE) *
inventory_cost, average_inventory_level = mean(data$inventory_level, na.rm = TRUE),total_orders= length(which(data$order > 0)),ordering_cost = length(which(data$order > 0)) * ordering_cost,
total_lost_sales = sum(data$lost_order, na.rm = TRUE), average_ordering_quantity= mean(order[order>0],na.rm = TRUE),ordering_interval= paste0(round(length(demand)/length(which(data$order > 0)),2),'_periods'),
Item_fill_rate = 1 - (sum(data$lost_order, na.rm = TRUE)/sum(demand[1:(length(demand) - 1)])),
cycle_service_level = 1 -(length(which(data$lost_order > 0))/(length(demand) - 1)), saftey_stock = mean(saftey_stock,na.rm = TRUE),
average_sales= mean(sales,na.rm = TRUE),rmse= sqrt(mean((demand-forecast)^2,na.rm=TRUE)),
mae= mean(abs(demand-forecast),na.rm = TRUE),me= mean(demand-forecast),mape= mean((abs(demand-forecast)/abs(demand))*100,na.rm=TRUE))
metrics$"average_flow_time(throughput)"= metrics$average_inventory_level/metrics$average_sales
metrics$demand_class<- demand_class$Type
if(plot== TRUE){
suppressWarnings(
print(plotly::ggplotly(data[is.na(data[,c('sales','demand','order')])==FALSE,] %>% ggplot(aes(x= period,y= demand,color="demand"))+geom_line()+
geom_line(aes(y=sales,color="sales"))+geom_line(aes(y=forecast,color="forecast"))+
geom_point(aes(y=inventory_level,color="inventory level"))+
theme_minimal()+geom_line(aes(y=order,color="order"))+ggtitle("R s S Dynamic Policy")))
)
}
return(list(simu_data = data, metrics = metrics))
}
R_s_S_dynamic(demand = rpois(90,9),forecast = rpois(90,9),service_level = 0.95,distribution = 'nbinom',
leadtime = 2,Review_period = 10,min = 70,Backlogs=TRUE,plot = TRUE)
Any scripts or data that you put into this service are public.
Add the following code to your website.
For more information on customizing the embed code, read Embedding Snippets.