3PL-HUB Supply Chain Logistics Cost Simulation Study Based on System Dynamics

2013 ◽  
Vol 779-780 ◽  
pp. 1752-1757 ◽  
Author(s):  
Jun Zou ◽  
Liang Shan
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Simulation Study ◽  
System Analysis ◽  
Bullwhip Effect ◽  
Supply Chain System ◽  
Logistics Cost ◽  
Chain System ◽  
Supply Chain Logistics ◽  
Cost Simulation

System dynamics provides a more intuitive and effective tool for system analysis in area supply chain logistics. By using method of system dynamics, this paper builds up a 3PL-HUB three echelon supply chain system from the perspective of costs, compares supply chain logistics costs variation in two cases with and without 3PL-HUB involved in, simulates logistics costs of each node enterprise, and fully analyzes the influence of 3PL-HUB on bullwhip effect and fluctuation of inventory of supply chain members. It shows that 3PL-HUB can reduce costs and benefit all the enterprises of whole supply chain, which represents a method to enhance supply chain synergy.

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.

Containerization Method for Logistic Cost Reduction Based on Closed-Loop Supply Chain Model

2015 ◽  
Author(s):  
Xinyan Ou ◽  
Qing Chang ◽  
Guoxian Xiao ◽  
Jorge Arinez
Keyword(s):  
Mathematical Model ◽  
Supply Chain ◽  
System Performance ◽  
Closed Loop ◽  
Cost Savings ◽  
Supply Chain System ◽  
Logistics Cost ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Logistic Cost

Logistics cost is an important contributor to the overall cost in a supply chain system. By using collapsible containers, the frequency of return freight can be reduced and the return of containers can be optimized, leading to potential logistic cost savings. However, the dynamic behavior of container flows due to demand, inventory, storage, and repair requirements make it difficult to accurately analyze container system performance. An accurate estimation of this collapsible container usage impact is of great importance for decision-making. This paper describes the development of a mathematical model of the container dynamic flow system by using the collapsible containers. A continuous time, discrete space Markov process is used for stochastic scenario. The model determines the total cost savings, based on the collapsible rate, the number of collapsible containers, the performance of the factory and the supplier and the transportation environment. The presented mathematical formulation enables the evaluation of the system performance. A case study of collapsible container supply chain system demonstrates the advantages of this methodology. In addition, a simulation model of this stochastic system is presented to verify the mathematical model. Simulation tests are conducted to demonstrate the potential logistics cost savings in the closed-loop supply chain system.

scholarly journals SUPPLY CHAIN MANAGEMENT: A SYSTEM DYNAMICS APPROACH TO IMPROVE VISIBILITY AND PERFORMANCE

2011 ◽  
Author(s):  
Chan Kah Wai ◽  
Chooi-Leng Ang
Keyword(s):  
Supply Chain ◽  
System Dynamics ◽  
Simulation Modelling ◽  
Feedback Systems ◽  
Supply Chain System ◽  
Business Policy ◽  
Chain System ◽  
And Performance ◽  
Dynamics Models ◽  
Key Events

Competitiveness is one of the factors successful organizations excel in, and they will do anything necessary to gain an edge over their competitors. The system dynamics approach to simulation modelling is being considered as one of the methods to increase competitiveness. System dynamics is essentially a methodology suited to studying and managing complex feedback systems and provides a means for understanding the causes of industry behaviour. This research builds a complete system dynamics model for internal supply chain events (from order to ship-out) from the perspectives of a semiconductor company. System dynamics models are simulation-based models that allow the investigation and identification of discrepancies between the business policy and the actual practice of key events as well as provide a better visibility of the company’s system. With the understanding of the internal workings of the supply chain system, experiments with the simulation model could provide alternative configurations to achieve better performance. This research utilizes system dynamics to better understand the supply chain system and with it, to find better solutions through experimentations with a few key variables in the supply chain system. The result of this research reveals that the company could achieve 25% reduction in inventory cost should the recommendations be followed.  

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.

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