We study a two echelon supply chain with AR(1) demand and unit replenishment lead-times. Each echelon of the supply chain uses conditional expectation to generate MMSE forecasts. Both echelons use these forecasts inside the “Order-Up-To” policy to generate replenishment orders. We investigate 3 different scenarios: The first is when each echelon aims to minimize their own inventory holding and ...

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...

C often face nonstationary demand due to product life cycles and seasonality, and nonstationary demand complicates supply chain managers’ inventory decisions. This paper proposes a simple heuristic for determining stocking levels in a serial inventory system. Unlike the exact optimization algorithm, the heuristic generates a near-optimal solution by solving a series of independent single-stage ...

We study a multi-item, two-echelon, continuous-review inventory problem at a Dutch utility company, Liander. We develop a model that optimizes the quantities of service parts and their allocation in the two-echelon network under an aggregate waiting time restriction. Specific aspects that we address are emergency shipments in case of stockout, and batching for regular replenishment orders at th...

We consider a single-echelon, single-item inventory system where both demand and lead-time are stochastic. Continuous review policy is used to control the inventory system. The objective is to calculate the reorder point level under stochastic parameters. A case study is presented in Neonatal Intensive Care Unit. Keywords—Inventory control system, reorder point level, stochastic demand, stochas...

We consider a multi-item two-echelon inventory system in which the central warehouse operates under a (Q,R) policy, and the local warehouses implement basestock policy. An exact solution procedure is proposed to find the inventory control policy parameters that minimize the system-wide inventory holding and fixed ordering cost subject to an aggregate mean response time constraint at each facility.

Purpose This study focuses on a specific method of meat production that involves carcass purchase and by packing facilities with novel two-stage model simultaneously considers location-routing inventory-production operating decisions. The considered problem aims to reduce variable fixed transportation costs, inventory holding cost the opening cold storage facilities. Design/methodology/approach...

Applied Materials, Inc. is the global leader in nanomanufacturing technology solutions, with a broad portfolio of innovative equipment, service and software products. The company supports its customers worldwide with an extensive service and parts network of over 100 locations. At the end of 2006, the company decided to evaluate and rationalize its network design in North America. A detailed op...

  This paper aims to evaluate inventory cost of a Two-echelon serial supply chain system under vendor managed inventory program with stochastic demand, and examine the effect of environmental factors on the cost of overall system. For this purpose, we consider a two-echelon serial supply chain with a manufacturer and a retailer. Under Vendor managed inventory program, the decision on inventory ...