In the book “Optimal inventory modeling of systems: multi-echelon techniques” the author Craig Sherbrooke, who has developed several important model in this area, describes a part of the model cosidered in this manuscript as follows (in “aircraft language”): “When a malfunction is diagnosed on an aircraft, the malfuncioning item is removed from the aircraft and brought into base supply. If a sp...

The bullwhip effect is defined as the distortion of demand information as one moves upstream in the supply chain, causing severe inefficiencies in the whole supply chain. Although extensive research has been conducted to study the causes of the bullwhip effect and seek mitigation solutions with respect to several demand processes, less attention has been devoted to the ...

We consider N-stage serial production/distribution systems with stationary demand at the most downstream stage. First, we study classical Clark-Scarf model with both average cost and discounted cost criteria. The optimal echelon base-stock levels are obtained in terms of only probabilistic distributions of leadtime demand. This analysis yields a novel approach for developing bounds and simple h...

The Multi-Echelon Distribution Supply Chain (MEDSC) is a multifaceted structure, focusing on the integration of all factors that involved in the overall distribution process of finished products to the customers. The growing interest in multi-echelon distribution systems has highlighted the need to adopt an appropriate approach to ensure the efficient management of their complexity. While there...

This paper focuses on the development of simulation-based environment for multi-echelon cyclic planning and optimisation in the product maturity phase. It is based on integration of analytical and simulation techniques. Analytical techniques are used to obtain initial planning decisions under conditions of stochastic demand and lead time, whereas simulation techniques extend these conditions to...

We analyse a single echelon single item inventory system where the demand and the lead time are stochastic. Demand is modelled as a compound Poisson process and the stock is controlled according to a continuous time order-up-to level policy. We propose a new method for determining the optimal order-up-to level for a cost oriented inventory systems where unfilled demands are backordered. The con...

Bullwhip costs money, wastes resources, and loses customers. So drawing on a basis of analytical, simulation and experiential techniques, the authors’ present four material flow principles which can be recommended as strategies to reduce the bullwhip effect. A real-world case study from the precision mechanical engineering sector is employed to illustrate the effect of rapid response manufactur...