Simulating demand uncertainty and inventory control variability of multi-echelon distribution supply chain

Author(s):  
Hamid Ech-Cheikh ◽  
Saad Lissane Elhaq ◽  
Ahmed Rachid ◽  
Abdessamad Douraid
Author(s):  
Peeyush Vats

Demand aggregation is an important concept for controlling inventory in supply chain under uncertain demand. In this concept demand of two or more regions are aggregated, as a result the demand uncertainty is reduced. This concept is very much useful to reduce the safety stocks and it reduces the variability in demand. In this study a demand aggregation model is produced for three different typesof products in two echelon supply chain.This study represents a mathematical model for demand aggregation for different types of product and it provides optimum inventory policy (reorder point, ordering quantity).


2014 ◽  
Vol 971-973 ◽  
pp. 2346-2349 ◽  
Author(s):  
Xiu Juan Zhang

Supply chain management , so that enterprises not only to face the fierce competition in the international market , and can withstand demand uncertainty and rapid technological innovation and other factors that impact . Production and inventory management is always an important part of business process indispensable , is the added value chain to achieve the important part. In supply chain management, inventory level not only affects the overall cost of a single enterprise , but also restricts the performance of the entire supply chain. Based on the analysis of the traditional inventory management , supply chain theory combined with the latest developments , the use of vendor-managed inventory , joint management of inventory control, inventory control, multi-level strategy, inventory control, supply chain environment for further improvements , making inventory control of the supply chain environment more perfect .


2012 ◽  
Vol 472-475 ◽  
pp. 3273-3276
Author(s):  
Qing Ying Zhang ◽  
Ying Chi ◽  
Yu Liu ◽  
Qian Shi

The main target of supply chain management is to control inventory of each node enterprise effectively with the minimum cost. In this paper, the control strategies and methods of inventory based on supply chain management are put forward, which are significant for saving the cost of supply chain and improving the overall benefits of the whole chain.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jagan Mohan Reddy K. ◽  
Neelakanteswara Rao A. ◽  
Krishnanand Lanka ◽  
PRC Gopal

Purpose Pull production systems have received much attention in the supply chain management environment. The number of Kanbans is a key decision variable in the pull production system as it affects the finished goods inventory (FGI) and backorders of the system. The purpose of this study is to compare the performance of the fixed and dynamic Kanban systems in terms of operational metrics (FGI and backorders) under the demand uncertainty. Design/methodology/approach In this paper, the system dynamics (SD) approach was used to model the performance of fixed and dynamic Kanban based production systems. SD approach has enabled the feedback mechanism and is an appropriate tool to incorporate the dynamic control during the simulation. Initially, a simple Kanban based production system was developed and then compared the performance of production systems with fixed and dynamic controlled Kanbans at the various demand scenarios. Findings From the present study, it is observed that the dynamic Kanban system has advantages over the fixed Kanban system and also observed that the variation in the backorders with respect to the demand uncertainty under the dynamic Kanban system is negligible. Research limitations/implications In a just-in-time production system, the number of Kanbans is a key decision variable. The number of Kanbans is mainly depended on the demand, cycle time, safety stock factor (SSF) and container size. However, this study considered only demand uncertainty to compare the fixed and dynamic Kanban systems. This paper further recommends researchers to consider other control variables which may influence the number of Kanbans such as cycle time, SSF and container size. Originality/value This study will be useful to decision-makers and production managers in the selection of the Kanban systems in uncertain demand applications.


2021 ◽  
Vol 2021 (0) ◽  
pp. 208
Author(s):  
Asumi ITO ◽  
Toshiya KAIHARA ◽  
Daisuke KOKURYO ◽  
Nobutada FUJII

2014 ◽  
Vol 945-949 ◽  
pp. 3187-3190
Author(s):  
Hai Dong ◽  
Jin Hua Liu ◽  
Liang Yu Liu

The bullwhip effect was caused by fuzzy demand among the enterprises. In order to reduce this effect, control theory was applied to solve the inventory in supply chain. Firstly, inventory control in supply chain and the bullwhip effect was researched. Secondly, a kind of proportional integral differential (PID) controller was developed for inventory control in a three-level supply chain, and the mathematical model of the PID controller for inventory control was presented. Finally, the results show that the PID controller can evidently alleviate the bullwhip effect and inventory fluctuations under the suitable combination of control gain.


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