Model Predictive Control (MPC) is shown to provide a robust, flexible framework to stabilize inventories yet still meet customer demand with minimal safety stock. The translation of available information in the supply chain problem into MPC variables is demonstrated with a two-node supply chain example. A six-node, two-product, threeechelon demand network simulation proposed by Intel Corp. is w...

We investigate a two-stage serial supply chain with stationary stochastic demand and fixed transportation times. Inventory holding costs are charged at each stage, and each stage may incur a consumer backorder penalty cost, e.g. the upper stage (the supplier) may dislike backorders at the lower stage (the retailer). We consider two games. In both, the stages independently choose base stock poli...

This paper examines the effect that product pricing has on the dynamics and variability of a supply chain, with a focus in retail inventory. Pricing policies and strategies and the impacts of prices on demand and inventories within the retail supply chain environment are reviewed. Recent pricing and markdown research is examined. An example model is presented that is stochastic and uses simulat...

Abstract: This study relies on integrated inventory theory which merges with the supply chain concept and aims at the steel bar material of precast factory’s two-echelon supply chain system. In order to consider the variable demand rate, unfixed supply time, unfixed supply frequency and unfixed supply quantity, this study builds a strategic model that minimizes the total inventory cost of all p...

Collaboration has been recognized as a significant process that holds the value creation opportunity in supply chain management. Evaluating the value of collaboration is thus necessary for developing the effective collaboration mechanisms. This paper presents the evaluation approach specifically focusing on the supply-side collaboration on inventory decisions between a supplier and a distributo...

A major issue in supply chain inventory management is the coordination of inventory policies adopted by different members in a supply chain including suppliers, manufacturers, distributors, etc. This paper presents a fractal-based approach for inventory management in order to minimize inventory costs and smooth material flows between supply chain members while responsively meeting customer dema...

The Guaranteed Service Model (GSM) computes optimal order-points in multiechelon inventory control under the assumptions that delivery times can be guaranteed and the demand is bounded. Our new Stochastic Guaranteed Service Model (SGSM) with Recourse covers also scenarios that violate these assumptions. Simulation experiments on real-world data of a large German car manufacturer show that polic...

Inventory replenishment rules contribute significantly to the bullwhip effect and inventory instability in supply chains. Smoothing replenishment rules have been suggested as a mitigation solution for the bullwhip effect but dampening the bullwhip effect might increase inventory instability. This paper evaluates a real-time inventory replenishment system denoted as SPC that utilizes a control c...

In 1998, the retail sales and marketing division of Time Inc., the largest publisher of consumer magazines in the US, reviewed its newsstand distribution principles and procedures for its magazines. This review affected the three major distribution decisions: the evaluation of each magazine’s national print order, the wholesaler allotment procedure, and the store distribution process. For this ...