We consider a multi-location inventory system where inventory choices at each location are centrally coordinated through the use of lateral Transshipments. This cooperation between different locations of the same echelon level often leads to cost reduction and service level improvement. However, when some locations face embarrassing storage capacity limits, inventory sharing through transshipme...

Supply chain inventories are prone to fluctuations and instability. Known as the bullwhip effect, small variations in the end item demand create oscillations that amplify throughout the chain. By using system dynamics simulation, we investigate some of the structural sources of the bullwhip effect, and explore the effectiveness of information sharing to eliminate the undesirable fluctuations. E...

This paper considers a single-echelon, continuous review, inventory system with a warehouse facing compound Poisson customer demand. The replenishment lead-time is constant. Demand that cannot be met directly is backordered. There are standard linear holding and backorder costs but no set-up or ordering cost. It is assumed that the demand process starts at a certain given time. Consequently, be...

Manufacturing managers face increasing pressure to reduce inventories across the supply chain. However, in complex supply chains, it is not always obviouswhere to hold safety stock to minimize inventory costs and provide a high level of service to the final customer. In this paper we develop a framework for modeling strategic safety stock in a supply chain that is subject to demand or forecast ...

Inventory managers are responsible for the trade-off between inventory holding costs and customer service. In this paper we consider a periodic review multi-item system with exogenous lot-sizes backordering. The objective is to minimize total subject constraint that aggregate fill rate should be at least equal target level. weighted average of rates all items in assortment. We three ways defini...

A multi-product, multi-stage, and multi-period scheduling model is proposed in this paper to deal with multiple incommensurable goals for a multi-echelon supply chain network with uncertain market demands and product prices. The uncertain market demands are modeled as a number of discrete scenarios with known probabilities, and the fuzzy sets are used for describing the sellers’ and buyers’ inc...