A simulation study of single-vendor, single and multiple-manufacturers supply chain system, with stochastic demand and two distribution policies

This paper addresses the long-standing stochastic single-vendor, multi-manufacturer inventory control problem, using simulation optimization. It is assumed that Manufacturers producing similar goods experience very high random demand; hence, safety stock of raw materials held in reserve their warehouses. The vendor supplying this material (principal ingredients) as a policy restricts shipments to multiples full truck load. Thus, it necessary take replenishment decision and coordinate delivery among these manufacturers. To solve we modeled single vendor, manufacturer version problem (AlDurgam et al., 2017) optimization techniques, which was validated numerically parameters results from AlDurgam al. (2017). model modified systematically relax assumption under two distribution policies namely, joint reorder point managed inventory. These were evidently with stringent conditions literature. A numerical example provided compare performances proposed policies, VMI found performed better terms financial savings. Lastly, investigate robustness famous continuous review (Q, R) widely used mathematical modeling against common cycle assumption. coefficient variation thus suggested judgment criterion when embrace ahead other techniques.