This paper aims to build integrated forward and reverse logistics model, and to optimize it with closed loop supply chain (CLSC). After that, we evaluate the effectiveness of the proposed model with the numerical examples, and simulate it with a bottles distilling/sale company in Korea. This paper designs the method of calculation for a solution using optimization algorithms with the priority-b...

A centralized multi-echelon, multi-product supply chain network is presented in a multi-period setting with products that show varying demand against price. An important consideration in such complex supply chains is to maintain system performance at high levels for varying demands that may be sensitive to product price. In order to examine the price-centric behavior of the customers, the conce...

We explore the management of inventory for stochastic-demand systems, where the product’s supply is randomly disrupted for periods of random duration, and demands that arrive when the inventory system is temporarily out of stock become a mix of backorders and lost sales. The stock is managed according to the following modified (s , S) policy: If the inventory level is at or below s and the supp...

The retail industry is experiencing problems in the supply chain because there is no formal collaboration between the retailer and supplier. Demand uncertainty in the supply chain, known as the "bullwhip effect," results in excess inventory and inefficiencies in the supply chain. Demand forecasts and orders are often distorted unless they are developed jointly by the partners. These factors cre...

The significance of the basic idea implicit in the moving horizon control (MHC) has been recognized a long time ago in the operations management literature as a tractable scheme for solving stochastic multi period optimization problems, such as production planning and supply chain management, under the term moving horizon. In this paper, a moving horizon controller with move suppression term us...

We study stochastic inventory planning with lost sales, where contrary to classical inventory theory, the knowledge of the demand distribution is not available a priori. While the manager observes the sales quantities in each period, lost sales are unobservable, i.e., demand data is censored. The decision in each period depends only on historical sales data. Excess inventory is either perishabl...

We study stochastic inventory planning with lost sales and instantaneous replenishment, where contrary to the classical inventory theory, the knowledge of the demand distribution is not available. Furthermore, we observe only the sales quantity in each period, and lost sales are unobservable, that is, demand data are censored. The manager must make an ordering decision in each period based only...

The paper compares the expected performance of a Vendor Managed Inventory (VMI) supply chain with a traditional “serially-linked” supply chain. The emphasis of this investigation is the impact these two alternative structures have on the “Bullwhip Effect” generated in the supply chain. We pay particular attention to the manufacturer’s production ordering activities via a simulation model based ...