scholarly journals Inventory and Production Dynamics in a Discrete-Time Vendor-Managed Inventory Supply Chain System

2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Yongchang Wei ◽  
Fangyu Chen ◽  
Hongwei Wang
Keyword(s):  
Supply Chain ◽  
Discrete Time ◽  
Bullwhip Effect ◽  
Vendor Managed Inventory ◽  
Function Model ◽  
Simulation Experiments ◽  
Supply Chain System ◽  
Chain System ◽  
Production Dynamics ◽  
Theoretical Results

This paper presents some analytical results on production and order dynamics in the context of a discrete-time VMI supply chain system composed of one retailer and one manufacturer. We firstly derive the lower bound and upper bound on the range of inventory fluctuations for the retailer under unknown demand. We prove that the production fluctuations can be interestingly smoothed and stabilized independent of the delivery frequency of the manufacturer used to satisfy the retailer’s demand, even if the retailer subsystem is unstable. The sufficient and necessary stability condition for the whole supply chain system is obtained. To further explore the production fluctuation problem, the bullwhip effect under unknown demand is explored based on a transfer function model with the purpose of disclosing the influences of parameters on production fluctuations. Finally, simulation experiments are used to validate the theoretical results with respect to inventory and production fluctuations.

scholarly journals Dynamic Complexities in a Supply Chain System with Lateral Transshipments

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-15 ◽  
Author(s):  
Yongchang Wei ◽  
Fangyu Chen ◽  
Feng Xiong
Keyword(s):  
Supply Chain ◽  
Customer Service ◽  
State Space Model ◽  
Bullwhip Effect ◽  
Performance Measurements ◽  
Supply Chain System ◽  
Chain System ◽  
Customer Service Level ◽  
Lateral Transshipment ◽  
The Stability

The horizontal interaction between retailers, coupled with replenishment rules and time delays, makes the dynamics in supply chain systems highly complicated. This paper aims to explore the impacts of lateral transshipments on the stability, bullwhip effect, and other performance measurements in the context of a two-tiered supply chain system composed of one supplier and two retailers. In particular, we developed a unified discrete-time state space model to address two different scenarios of placing orders. Analytical stability results are derived, through which we found that inappropriate lateral transshipment policies readily destabilize the supply chain system. Moreover, the lead time of lateral transshipments further complicates the stability problem. Theoretical results are validated through simulation experiments and the influences of system parameters on performance measures are investigated numerically. Numerical simulations show that lateral transshipments help improve the customer service level for both retailers. It is also interesting to observe that the demand of the two retailers can be satisfied even if only one retailer places orders from the upstream supplier.

scholarly journals STUDI KASUS PENERAPAN VENDOR MANAGED INVENTORY PADA SISTEM RANTAI PASOK

2018 ◽  
Vol 2 (1) ◽  
pp. 28-39
Author(s):  
Ricky Virona Martono
Keyword(s):  
Supply Chain ◽  
Pharmaceutical Company ◽  
Production System ◽  
Key Factors ◽  
Vendor Managed Inventory ◽  
Supply Chain System ◽  
Chain System ◽  
Inventory Replenishment

Vendor Managed Inventory (VMI) is an approach in managing inventory between supplier and consumer in an supply chain system. In VMI concept, supplier keeps its inventory at consumer’s warehouse, meanwhile inventory ownership belong to supplier until it is used by consumer. The advantage of VMI is to reduce inventory replenishment ordering process and to reduce the usage of consumer’s warehouse space. Some key factors to achieve VMI success are: coordination, communication, production system and inventory order reliability.When supplier is a subsidiary of consumer, coordination between the two usually puts them not at an equivalent level, especially when supplier’s infrastructure is not as good as that at consumer. This research is a case study at a pharmaceutical company and its supplier which acts as its subsidiary. Information and data gathered by deep interview to all parties responsible for supply chain, production, and inventory at supplier and consumer sides. The results show advantages and obstacles in applying VMI, thus long-term commitment is needed to reach a better performance.

scholarly journals Study of a supply chain system with the presence of bullwhip effect

2018 ◽  
Vol 144 ◽  
pp. 05003
Author(s):  
Ayush Shrivastava ◽  
Raghavendra Kamath ◽  
Himanshu Sharma ◽  
Ajitesh Gogoi
Keyword(s):  
Adverse Effect ◽  
Supply Chain ◽  
System Dynamics ◽  
Bullwhip Effect ◽  
Open Loop ◽  
Open Loop System ◽  
Supply Chain System ◽  
Chain System ◽  
Hypothetical Data ◽  
Moderate Complexity

A study has been conducted to understand the effect of bullwhip phenomenon in a supply chain system. The hypothetical data collected from the study is used to make a model which can be used to simulate the operation of the system with moderate complexity. System dynamics approach is used to create an open loop system. The phenomenon used is slightly modified and empirically analysed to bring down its adverse effect on the system. The results obtained graphically are emphasising the effect of bullwhip on the various levels of the supply chain system.

THE INTEGRATED DETERMINISTIC MODEL FOR A VENDOR MANAGED INVENTORY IN A TWO-STAGE SUPPLY CHAIN

2015 ◽  
Vol 77 (5) ◽  
Author(s):  
Mohd Kamarul Irwan Abdul Rahim ◽  
Santhirasegaran a/l S.R. Nadarajan ◽  
Mohd Rizal Razalli
Keyword(s):  
Supply Chain ◽  
Deterministic Model ◽  
Optimization Approach ◽  
Vendor Managed Inventory ◽  
Two Stage ◽  
Supply Chain System ◽  
Travel Costs ◽  
Chain System ◽  
System Vendor

In a two-stage supply chain system, vendor managed inventory (VMI) policies is an integrating decisions between a supplier and his retailers. The supplier assumes the responsibility of maintaining inventory at its retailers and ensuring that they will not run out of stock at any moment. This paper discusses an optimization approach, considering the model of static demand on the inbound as well as the outbound inventory for a two-stage supply chain implementing VMI. In the proposed solutions for coordinating the single-warehouse multiple-retailers (SWMR) system, retailers are first clustered to minimize the within-cluster travel costs and distances and are then replenished using an optimal direct shipping strategy satisfying some additional restrictions.

scholarly journals A New Supply Chain System and Its Impulsive Synchronization

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-9
Author(s):  
Yang Peng ◽  
Jiang Wu ◽  
Shiping Wen ◽  
Yuming Feng ◽  
Zhengwen Tu ◽  
...  
Keyword(s):  
Supply Chain ◽  
Impulsive Control ◽  
Negative Impact ◽  
Control Cost ◽  
Simulation Experiments ◽  
Supply Chain System ◽  
Important Method ◽  
Chain System ◽  
Impulsive Synchronization ◽  
Exogenous Disturbances

The purpose of this paper is to discuss modelling and synchronization of nonlinear supply chain system. Firstly, we present a new supply chain system which is sensitive to various uncertainties along with exogenous disturbances. Synchronization is an important method to reduce the negative impact of uncertainties and disturbances on the supply chain. Since impulsive control can reduce control cost and the amount of transmitted information drastically, we discuss impulsive synchronization behavior of two supply chain systems with the same structure. Finally, simulation experiments are given to show the effectiveness of our analytical results.

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