scholarly journals Socially concerned periodic review replenishment system with customer service level and supply chain contracting

2021 ◽  
Author(s):  
Maryam Johari ◽  
Seyyed-Mahdi Hosseini-Motlagh ◽  
Mohammadreza Nematollahi ◽  
Mark Goh ◽  
Joshua Ignatius
Keyword(s):  
Supply Chain ◽  
Social Responsibility ◽  
Customer Service ◽  
Demand Uncertainty ◽  
Service Level ◽  
Benefit Sharing ◽  
Periodic Review ◽  
Customer Service Level ◽  
Sharing Strategy ◽  
Supply Chain Contracting

This study contributes to the periodic review inventory system literature by: (1) investigating customer service level (CSL) as a social responsibility in pharmaceutical supply chains (PSCs) and (2) proposing supply chain contracting to achieve win-win coordination and guarantee a satisfied CSL. Specifically, considering the demand uncertainty as one of the main challenges faced by pharmacies, we analyze how applying contracts to coordinate the inventory policy of a pharmacy with that of its supplier can affect their profits and the CSL offered to society. Having shown the advantages of the centralization compared to the decentralization, we design a coordination scheme based on the quantity discount contract to encourage the players move towards centralization. Under the proposed scheme, we first obtain the minimum and maximum acceptable amounts of discount from each actor’s viewpoint. Then, we propose a benefit-sharing strategy in order to make the plan interesting to both sides. The proposed discount contract and benefit-sharing strategy distribute the extra profits equitably between the two participants according to their bargaining power, which can make a win-win condition for two actors. Our results suggest that coordinating review period and order-up-to-level of the retailer and replenishment multiplier of the supplier will be of benefit in terms of both economic profitability and social responsibility.

Simulating Demand Uncertainty and Inventory Control Variability of Multi-Echelon Distribution Supply Chain

2014 ◽  
Vol 5 (2) ◽  
pp. 12-31 ◽  
Author(s):  
Hamid Ech-Cheikh ◽  
Saâd Lissane Elhaq ◽  
Ahmed Rachid ◽  
Abdessamad Douraid
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Distribution System ◽  
Simulation Modeling ◽  
Demand Uncertainty ◽  
Performance Metrics ◽  
Simulation Models ◽  
Service Level ◽  
Research Area ◽  
Customer Service Level

Development of simulation models allows performance analysis of multi-echelon inventory networks, and this part of supply chain is not well-established research area. Moreover, by encapsulating all major characteristics of multi-echelon system, the simulation modeling does not allow only its study, but also it provides the means to achieve the desired system performance. This paper deals with a multi-echelon distribution inventory system made of suppliers, distributors and retailers. The retailer faces stochastic demands placed by customers and replenishing from its distributor, which in turn procures from its supplier at the upstream of the chain. The main purpose of this simulation model is to analyze the multi-echelon distribution system behavior according some key performance metrics such as cost and backorder, as well as customer service level at each echelon.

scholarly journals A literature review on multi-echelon inventory management: the case of pharmaceutical supply chain

2018 ◽  
Vol 200 ◽  
pp. 00013 ◽  
Author(s):  
Nouçaiba Sbai ◽  
Abdelaziz Berrado
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Inventory Management ◽  
Raw Materials ◽  
Integrated Approach ◽  
Service Level ◽  
Pharmaceutical Products ◽  
Management Problem ◽  
Pharmaceutical Supply Chain ◽  
Customer Service Level

Inventory management remains a key challenge in supply chain management. Many companies recognize the benefits of a good inventory management system. An effective inventory management helps reaching a high customer service level while dealing with demand variability. In a complex supply chain network where inventories are found across the entire system as raw materials or finished products, the need for an integrated approach for managing inventory had become crucial. Modelling the system as a multi-echelon inventory system allows to consider all the factors related to inventory optimization. On the other hand, the high criticality of the pharmaceutical products makes the need for a sophisticated supply chain inventory management essential. The implementation of the multi-echelon inventory management in such supply chains helps keeping the stock of pharmaceutical products available at the different installations. This paper provides an insight into the multi-echelon inventory management problem, especially in the pharmaceutical supply chain. A classification of several multi-echelon inventory systems according to a set of criteria is provided. A synthesis of multiple multi-echelon pharmaceutical supply chain problems is elaborated.

scholarly journals Risk Management in Supply Chain Management: Case Study of a Brazilian Automotive Distribution Process

2015 ◽  
Vol 7 (5) ◽  
pp. 109 ◽  
Author(s):  
Diego A Wolfs ◽  
Franco Takakura ◽  
Maysa Rezende ◽  
Mauro Vivaldini ◽  
Pedro Domingos Antoniolli
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Customer Service ◽  
Product Distribution ◽  
Service Level ◽  
Added Value ◽  
Chain Management ◽  
Customer Service Level ◽  
Distribution Process ◽  
Management Case Study

<p>Globalisation requires from companies greater flexibility and adaptability of its internal processes, to allow them be aligned to market requirements. This flexibility results in new forms of relationships between partners, supply chains. For these chains differentiate themselves from their competitors, they should add value to products and services that they deliver to the end customer, while being profitable from the standpoint of its processes and operations. In this sense, would be needed effective supply chain management, which is constituted by collaboration and cooperation among partners, strategic and processes integration, to result in a profitable operation, and products and services with added value to the customer. Additionally, because logistics is a key element for the integration and collaboration among SC members, and due the fact that, depending of the scope of these chains, there are potentially more risks happening, which may have negative impacts on the customer service level, and consequently, loss of effectiveness of their logistics processes. This study aims to analyze the risks in a product distribution process in the Brazilian automotive sector, considering the operations performed by a logistics operator of this automaker.</p><strong>Keywords: </strong>Automotive Industry; Logistics Operator; Supply Chain; Supply Chain Management; Risks Management.

scholarly journals An Agent-Based Model Driven Decision Support System for Reactive Aggregate Production Scheduling in the Green Coffee Supply Chain

2019 ◽  
Vol 9 (22) ◽  
pp. 4903
Author(s):  
María Pérez-Salazar ◽  
Alberto Aguilar-Lasserre ◽  
Miguel Cedillo-Campos ◽  
Rubén Posada-Gómez ◽  
Marco del Moral-Argumedo ◽  
...  
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Customer Service ◽  
Service Level ◽  
Production Plan ◽  
Agent Based ◽  
Model Driven ◽  
Demand Pattern ◽  
Customer Service Level ◽  
Demand Patterns

The aim of this paper is to contribute to the thread of research regarding the need for logistic systems for planning and scheduling/rescheduling within the agro-industry. To this end, an agent-based model driven decision support system for the agri-food supply chain is presented. Inputs in this research are taken from a case example of a Mexican green coffee supply chain. In this context, the decision support agent serves the purposes of deriving useful knowledge to accomplish (i) the decision regarding the estimation of Cherry coffee yield obtained at the coffee plantation, and the Parchment coffee sample verification decision, using fuzzy logic involving an inference engine with IF-THEN type rules; (ii) the production plan establishment decision, using a decision-making rule approach based upon the coupling of IF-THEN fuzzy inference rules and equation-based representation by means of mixed integer programming with the aim to maximize customer service level; and (iii) the production plan update decision using mathematical equations once the customer service level falls below the expected level. Three scenarios of demand patterns were considered to conduct the experiments: increasing, unimodal and decreasing. We found that the input inventory and output inventory vary similar over time for the unimodal demand pattern, not the case for both the increasing and decreasing demand patterns. For the decreasing demand pattern, ten tardy orders for the initial production schedule, an 88% service level, and nineteen tardy orders from the estimated production results, a 77% service level. This value falls below the expected level. Consequently, the updated aggregate production schedule resulted in ten tardy orders and an 88% service level.

An Effective Inventory Allocation Policy in Two-Echelon Distribution Network

2014 ◽  
Vol 627 ◽  
pp. 310-313
Author(s):  
Chi Yang Tsai ◽  
Paul Peter Tekanene ◽  
Kuei Feng Li
Keyword(s):  
Customer Service ◽  
Service Level ◽  
Operational Planning ◽  
Optimal Order ◽  
Process Performance ◽  
Periodic Review ◽  
Dynamic Nature ◽  
Allocation Policy ◽  
Customer Service Level ◽  
Inventory Allocation

In this research, we look at the distribution in a two-echelon divergent system that considers periodic review in determining the optimal order-up-to level and rationing parameters to maintain customer service level target. We consider three policies that can provide assistance to inventory managers/planners for quick and effective in determining a rationing parameter that is flexible and effective with the dynamic nature of the demand during the rationing process. Performance comparisons between these policies are given for various problems including the application in real operational/planning setting, and least deviation from the intended objective amongst them suggests otherwise a better policy to adopt.

Optimizing Service Parts Inventory in a Multiechelon, Multi-Item Supply Chain with Time-Based Customer Service-Level Agreements

2007 ◽  
Vol 55 (2) ◽  
pp. 303-318 ◽  
Author(s):  
Kathryn E. Caggiano ◽  
Peter L. Jackson ◽  
John A. Muckstadt ◽  
James A. Rappold
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Service Level Agreements ◽  
Service Parts ◽  
Customer Service Level

Modeling Accuracy of Promised Ship Date and IT Costs in a Supply Chain

2010 ◽  
pp. 1-15
Author(s):  
Young M. Lee
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
Service Level ◽  
Business Environment ◽  
Management Process ◽  
Refresh Rate ◽  
It Systems ◽  
Availability Management ◽  
Customer Service Level ◽  
Modeling Accuracy

In the current dynamic, competitive business environment, customers expect to see products they purchase to be shipped on the date it is promised. However, accurate calculation of promised ship date by suppliers can only be obtained at expense of corporate IT systems that provide accurate availability data. Our study indicates that refresh frequency of availability data in IT system substantially impacts accuracy of the ship date that is promised to customer. The value of customer service level corresponding to accuracy of promised ship date needs to be estimated against the costs of having necessary IT system. The estimation requires a simulation model of availability management process. In this paper, we describe how to model and simulate the availability management process, and quantify the customer service level resulting from various availability refresh rate.

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