Distribution policy in an M-store regional supply chain
Journal article
Authors/Editors
Strategic Research Themes
No matching items found.
Publication Details
Author list: Monthatipkul C., Das S., Yenradee P.
Publisher: Inderscience
Publication year: 2010
Journal: International Journal of Integrated Supply Management (1477-5360)
Volume number: 5
Issue number: 3
Start page: 214
End page: 238
Number of pages: 25
ISSN: 1477-5360
eISSN: 1741-8097
Languages: English-Great Britain (EN-GB)
Abstract
The Regional Supply Chain Replenishment problem consists of one warehouse distributing one product to M-stores. Here, we assume the store demand is independent and normally distributed. There is one truck at the warehouse, which makes one replenishment trip to one store per period. Based on the store inventory level, the warehouse makes two decisions in each period: which store to replenish and the replenishment quantity. The objective is to position regional inventory to minimise lost sales. Two heuristic solutions are presented. The BL-Heuristic is easily implemented but performs well when demand variance is low. The AD-Heuristic uses an LP model to prescribe a replenishment plan. The key factor in the AD-Heuristic is the demand buffer factor K, and a simulation method for deriving K is proposed. The efficiency of the AD-Heuristic was tested, and its performance stays consistently within 5% of the adjusted lower bound. Copyright ฉ 2010 Inderscience Enterprises Ltd.
Keywords
Inventory rationing, Safety stock allocation
Contact Information