This article addresses the development of an integrated supplier selection and inventory control problems in supply chain management by developing a mathematical model for a multi-echelon system. In particular, a buyer firm that consists of one warehouse and N identical retailers wants to procure a product from a group of potential suppliers, which may require different price, ordering cost, le...

We consider a periodic-review, serial inventory system, in which each stage replenishes inventory according to an echelon-stock (r, nQ, T ) policy – a standard echelon-stock (r, nQ) policy executed every T periods. Demands are independent, identically distributed in different periods and occur at the most downstream stage. Two types of fixed costs are considered: setup cost and replenishment co...

An optimisation-based control framework that simultaneously determines the optimal inventory and product pricing policies is developed for multi-product, multi-echelon supply chain networks. The optimisation problem aims at adjusting the available manufacturing resources, product distribution, inventories and prices for the entire supply chain network to satisfy demand while maximising network ...

This paper addresses the integrated production-inventory-distribution decisions in a three-echelon supply chain (SC) network. The studied SC network is composed of a raw material processor that supplies different types of processed raw materials to a set of manufacturing facilities which in turn deliver their end products to a set of retailers facing external demand from end customers. A mixed ...

We consider an assembly system with multiple stages, multiple items, and multiple customer classes. The system consists of m production facilities, each producing a different item. Items are produced in variable batch sizes, one batch at a time, with exponentially distributed batch production times. Demand from each class takes place continuously over time according to a compound Poisson proces...

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...

This paper examines the cost-reduction effect of “postponed” routing decisions in a two-echelon supply chain. When a delivery vehicle leaves the warehouse with system replenishment quantities, it sequentially makes routing decisions to choose the next retailer to visit. To measure this effect this paper studies combined vehicle routing and inventoryallocation policies designed to minimize total...

We present a novel simulation platform called Optimization, Simulation, and Forecasting (OSF) for the domain of manufacturing and logistics supply-chain systems. It supports composition of DEVS, Linear Program (LP), and forecast models using an extended Knowledge Interchange Broker (KIB). Models developed in DEVS-Suite simulator, OPL-Studio optimization, and a heuristic Inventory Strategy Forec...