We study a two echelon supply chain with AR(1) demand and unit replenishment lead-times. Each echelon of the supply chain uses conditional expectation to generate MMSE forecasts. Both echelons use these forecasts inside the “Order-Up-To” policy to generate replenishment orders. We investigate 3 different scenarios: The first is when each echelon aims to minimize their own inventory holding and ...

We consider a two echelon supply chain with a single retailer and a single manufacturer. Inventory replenishment policies at the retailer level transmit customer demand variability to the manufacturer, sometimes even in an amplified form (known as the bullwhip effect). When production is inflexible at the manufacturing level, significant costs may be incurred by ramping up and down production l...

Supply chain performance is highly influenced by the coordination level between its members, which needs information sharing. In this article we consider a three-echelon direct sell supply chain model and focus on the problem of coordinated decision-making between its members. Our contribution is a first approach that measures the impact of the degree of coordination between the members. Demand...

it is necessary to consider the impact of demand uncertainty to model the comprehensive approach for supply chain network design. this paper presents four echelons, multiple commodity, and strategic–tactical model for designing supply chain network. uncertain demand, transportation mode selection with lead time configuration has been considered. a numerical example has been implemented to verif...

JDMS, Volume 2, Issue 2, April 2005 Pages 87–100 © 2005 The Society for Modeling and Simulation International Traditional multi-echelon inventory and readiness-based models have not fully examined the ability of effective transportation utilization to reduce cost, delay times, and improve readiness in the overall military logistics network. In this paper, we develop a simulation-based methodolo...

Multi-echelon distribution systems are quite common in supply-chain and logistic management. They are used by public administrations in their transportation and traffic planning strategies as well as by companies to model their distribution systems. In the literature, most studies address issues related to the movement of flows throughout the system from the origins to their final destinations....

In a dynamic environment such as a supply chain, even basic supplier-customer systems with structurally simple information and material flow formations have a tendency to exhibit operational complexity. The operational complexity of supplier-customer systems is associated with the uncertainty of information and material flows within and across organizations. Operational complexity or dynamic co...

This paper explores the differences between demand and supply uncertainty in multi-echelon supply chains. Our central premise is that the insights gained from the study of one type of uncertainty often do not apply to the other. In fact, the two types of uncertainty are in a sense mirror images of each other, in that the optimal strategy for coping with supply uncertainty may be exactly opposit...

We consider combined inventory control and throughput time reduction in multi-echelon, multiindenture spare part networks for system upkeep of capital goods. We construct a model in which standard throughput times (TPT) for repair and transportation can be reduced at additional costs. We first estimate the marginal impact of TPT reduction on the system availability. Next, we develop an optimiza...

Effective supply chain management (SCM) is currently recognized as a key determinant of competitiveness and success for most manufacturing and retailing organizations, because the implementation of supply chain management has significant impact on cost, service level, and quality. Numerous strategies for archiving these targets have been proposed and investigated in both practice and academic o...