In this study, a two-echelon supplier-manufacturer system with finite production rate and lead time is proposed. It is assumed that shortage is not permitted and the lot size of manufacturer (second echelon) is m-factors of the lot size of supplier (first echelon) and supplier can supply the manufacturer’s lot size in several shipments in each cyc...

Number: 007-0663 An Inventory Sharing and Allocation Method for a Multi-location Service Parts Logistics Network with Time-based Service Levels Erhan Kutanoglu Graduate Program in Operations Research and Industrial Engineering Department of Mechanical Engineering The University of Texas at Austin [email protected] POMS 18th Annual Conference Dallas, Texas, U.S.A. May 4 to May 7, 2007 Abstr...

Managing inventories is crucial to the objective of minimizing supply chain costs. This paper presents an approach for setting inventory norms in context of a real-life case of an industry which practices Vendor Managed Inventory (VMI). The role of warehouses and the inventories held by them becomes significant in such an environment. This paper presents a two-phase approach to determine variou...

We consider multi-echelon supply chains, typically consisting of retailer, distributor, manufacturer, etc. The inventory of each actor is subject to its own delay in delivery time, and each chooses its own inventory replenishment strategy. We model this interaction with a system of linear differential delay equations. When put in matrix form the system is triangular and we derive an exact solut...

This paper is concerned with the coordination of inventory control in divergent multiechelon inventory systems under periodic review and decentralized control. All the installations track echelon inventories. Under decentralized control the installations will decide upon replenishment policies that minimize their individual inventory costs. In general these policies do not coincide with the opt...

One of the main supply chain deficiencies is the bullwhip effect: demand fluctuations increase as one moves up the supply chain from retailer to manufacturer. The Beer Distribution Game is widely known for illustrating these supply chain dynamics in class. In this paper we present a spreadsheet application, exploring the two key causes of the bullwhip effect: demand forecasting and the type of ...

We consider a distribution system with a central warehouse and multiple retailers. The warehouse orders from an outside supplier and replenishes the retailers which in turn satisfy customer demand. The retailers are nonidentical, and their demand processes are independent compound Poisson. There are economies of scale in inventory replenishment, which is controlled by an echelon-stock, batch-tr...