This paper formulates a two-echelon single-producer multi-buyer supply chain model, while a single product is produced and transported to the buyers by the producer. The producer and the buyers apply vendor-managed inventory mode of operation. It is assumed that the producer applies economic production quantity policy, which implies a constant production rate at the producer. The operational pa...

Based on a Petri-net based simulation model, we investigate the effect of different customer response to stock-out on both the stock-out supply chain and the competing supply chain. Five types of customer stock-out responses are incorporated in the model to quantitatively assess the correlation between customer response and supply chain performance including bullwhip effect (BWE), on-hand inven...

Though often analyzed separately, supply chain instability and customer demand interact through product availability. We investigate the feedback between supply chain performance and demand variability in a model grounded in a first-hand study of the hybrid push–pull production system used by a major semiconductor manufacturer. While customers’ response to variable service levels represents an ...

We investigate the dynamics of a closed-loop make-to-stock supply chain consisting remanufacturer and manufacturer with first-order vector auto-regressive demand return process. Remanufactured products, considered as-good-as-new, partially satisfy market demand; newly manufactured products fill remainder. The cooperate to minimize sum 1) capacity costs at remanufacturing manufacturing processes...

The Internet is changing the automotive industry as the traditional manufacturer and dealer structure faces increased threats from third party e-tailers. Dynamic pricing together with the Direct-to-Customer business model can be used by manufacturers to respond to these challenges. Indeed, by coordinating production and inventory decisions with dynamic pricing, the automotive industry can incre...

There is a supply chain modeling approach based on traffic flow theory which considers inventory levels and material flows. The resulting models are linear, although they are subject to constraints such as maximum production rates, as well as non negative inventory and flow values. In previous works of the authors a bounded PI control for inventory regulation was introduced. The closed loop sys...

A manufacturers in the U.S. supply chain exhibit significant differences in their days of supply of finished vehicles (average inventory divided by average daily sales rate). For example, from 1995 to 2004, Toyota consistently carried approximately 30 fewer days of supply than General Motors. This suggests that Toyota’s well-documented advantage in manufacturing efficiency, product design, and ...

Logistical planning problems are complicated in practice because planners have to deal with the challenges of demand planning and supply replenishment, while taking into account the issues of (i) inventory perishability and storage charges, (ii) management of backlog and/or lost sales, and (iii) cost saving opportunities due to economies of scale in order replenishment and transportation. It is...