scholarly journals Simulation-based lateral transshipment policy optimization for s, S inventory control problem in a single-echelon supply chain network

2019 ◽  
Vol 10 (1) ◽  
pp. 9-16 ◽  
Author(s):  
Banu Yetkin Ekren ◽  
Bartu Arslan
Keyword(s):  
Supply Chain ◽  
Control Problem ◽  
Inventory Control ◽  
Cost Minimization ◽  
Technological Development ◽  
Control Policy ◽  
Supply Chain Network ◽  
Supply Network ◽  
Lateral Transshipment ◽  
Inventory Control Problem

Since it affects the performance of whole supply chain significantly, definition of correct inventory control policy in a supply chain is critical. Recent technological development enabled real time visibility of a supply network by horizontal integration of each node in a supply network. By this opportunity, inventory sharing among stocking locations is also possible in the effort of cost minimization in supply chain management.  Hence, lateral transshipment gained popularity and studies seeking the best lateral-transshipment policy is still under research. In this study, we aim to compare different lateral-transshipment policies for an s, S inventory control problem for a single-echelon supply chain network system. In this work, we consider a supply network with three stocking locations which may perform lateral transshipment among them when backorder takes place. We develop the simulation models of the systems in ARENA 14.5 commercial software and compare the performance of the policies by minimizing the total cost under a pre-defined fill rate constraint by using an optimization tool, OptQuest, integrated in that software. The results show that lateral transshipment works well compared to the scenario when there is no lateral transshipment policy in the network.

Inventory Control and Simulation Optimization in Supply Chain Network Based on MPC

2011 ◽  
Vol 66-68 ◽  
pp. 1718-1723
Author(s):  
Chun Ling Liu ◽  
Ji Zi Li ◽  
You Wu
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Predictive Control ◽  
Pid Control ◽  
Dynamic Performance ◽  
Operating Cost ◽  
Control Policy ◽  
Supply Chain Network ◽  
Control Effect ◽  
Control Approach

The control approach applies multivariable model-predictive control principles to the entire network. The optimization scheme based on predictive-control aims at adjusting the decision variables in the supply chain to satisfy the customer orders with the least operating cost over a specified rolling time horizon using a detailed difference model of the system. Dedicated feedback controllers are utilized to maintain product inventory at all nodes of the supply chain network within pre-specified target levels that are subsequently embedded within the optimization control framework. The PID control policy is applied to promoting the predictive control effect, and the comparative simulations of the system under both PID and non-PID control are exerted. Simulated results prove that the inventory control system with the proposed MPC optimizations show good dynamic performance. But the MPC approach combined with PID control makes better effect on inventory predicted control in the supply chain network.

scholarly journals Inventory Control System for a Healthcare Apparel Service Centre with Stockout Risk: A Case Analysis

2017 ◽  
Vol 2017 ◽  
pp. 1-12
Author(s):  
An Pan ◽  
Chi-Leung Hui
Keyword(s):  
Control Problem ◽  
Inventory Control ◽  
Lead Time ◽  
Control Policy ◽  
The Elderly ◽  
Inventory Cost ◽  
Product Demand ◽  
Service Centre ◽  
Inventory Control Policy ◽  
Inventory Control Problem

Based on the real-world inventory control problem of a capacitated healthcare apparel service centre in Hong Kong which provides tailor-made apparel-making services for the elderly and disabled people, this paper studies a partial backordered continuous review inventory control problem in which the product demand follows a Poisson process with a constant lead time. The system is controlled by an (Q,r) inventory policy which incorporate the stockout risk, storage capacity, and partial backlog. The healthcare apparel service centre, under the capacity constraint, aims to minimize the inventory cost and achieving a low stockout risk. To address this challenge, an optimization problem is constructed. A real case-based data analysis is conducted, and the result shows that the expected total cost on an order cycle is reduced substantially at around 20% with our proposed optimal inventory control policy. An extensive sensitivity analysis is conducted to generate additional insights.

Research of Optimizing Ordering and Inventory Control of Supply Chain Systems Based on GA

2011 ◽  
Vol 411 ◽  
pp. 378-382
Author(s):  
Yong Gao ◽  
Ming Yu Li ◽  
Jian Ping Wang
Keyword(s):  
Genetic Algorithm ◽  
Supply Chain ◽  
Control Problem ◽  
Inventory Control ◽  
Optimization Method ◽  
Chain Model ◽  
Supply Chain Optimization ◽  
Supply Chain Model ◽  
Inventory Control Problem ◽  
Material Ordering

In order to resolve material ordering and inventory control problem in supply chain, optimization method based on GA is put forward. Supply chain model in the paper is made up of one supplier, one manufacturer, N-retailers and end customers. Moreover, supply chain model is developed in terms of two policies: traditionally centralized controlling policy and the coordinating controlling policy. Lastly, optimizing ordering and inventory control problem for supply chain is solved by genetic algorithm (GA), and an instance is illustrated to show the validity of the method.

scholarly journals Analisis Bullwhip Effect pada Rantai Supply dengan Model Q Menggunakan Pendekatan Hadley-Within di PT. XYZ Medan

2019 ◽  
Vol 2 (4) ◽  
Author(s):  
Martha Purnama Sari Panggabean ◽  
Dimas Akmarul Putera ◽  
Nursafwah
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Distribution System ◽  
Control Policy ◽  
Bullwhip Effect ◽  
Product Distribution ◽  
Soft Drinks ◽  
Inventory Cost ◽  
Inventory Control Policy ◽  
Q Model

PT. XYZ adalah perusahaan yang bergerak didalam pembuatan kemasan botol minum. Pendistribusian produk dilakukan PT XYZ menggunakan data historis berdasarkan jumlah permintaan pada tahun 2013 dan 2014. Data tersebut menunjukkan bahwa terjadinya perbedaan hasil. Tahun 2013 memiliki jumlah permintaan yang lebih rendah dari tahun 2014. Informasi terdapat bahwa perlu dilakukan pengevaluasian karena didalam rantai produksi terdapat bullwhip effect. Terdapat nilai bullwhip Effect menujukan bahwa nilai bullwhip effect untuk distributor Indomaret, Carrefour, dan rantai manufakturnya masing-masing sebesar 0,5303; 0,2967, dan 0,5114. Usulan perbaikan dapat diatasi yaitu dengan model Q yang berfungsi menggendalikan persediaan pada rantai pasok dengan metodeHadley-Within. Perhitungan pengendalian persediaan untuk distributor Indomaret, Carrefour, dan rantai manufakturnya masing-masing sebesar 1,0721; 1,100; dan 1,0714. Hasil dari perhitungan menujukan bahwa terjadi keseimbangan antara penjual dan pembeli sehingga biaya pun dapat dihematkan pada PT XYZ.   PT. XYZ Medan is manufacturing company that produce soft drinks of beverages in containers. In the product distribution system at PT. XYZ Medan, found that the number of orders based on the result of forecasting in 2013 lower than actual orders at distrbutor and manufacturer in 2014. Distorsion of information on this order can evaluate the indication of bullwhip effect in supply chain. Based on the result calculation of bullwhip effect, found that the value of bullwhip effect for Indomaret distributor, Carrefour, and supply chain of manufacturer each of 0,5303; 0,2967, and 0,5114. Proposed improvements to predominate bullwhip effect that is by doing inventory control policy with Q model using Hadley-Within approach. The value of bullwhip effect aftre doing inventory control policy for Indomaret distributor, Carrefour, and supply chain of manufacturer each of 1,0721; 1,100; dan 1,0714. The value of bullwhip effect which is close to one shows that the variance between the number of the order and the number of the demand nearly balanced so as to save the inventory cost at PT. XYZ Medan.

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