Search results for "order up to"

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Current economic downturn and supply chain: The significance of demand and inventory smoothing

2014

The aim of this article is to analyse and quantify the effects of demand and inventory smoothing into supply-chain performance, facing the extreme volatility and impetuous alteration of the market produced by the current economic recession. To do so, we model a traditional serial three-stage supply chain and we test five settings of order smoothing under two shocks in the market demand, and we measure effects in terms of internal process benefits and customer service level of all supply chain partners. Results show that the implementation of this inventory strategy should be based on reward schemes; in fact a higher level of smoothing can generally improve the performance of the upstream st…

bullwhip effect; inventory management; order up to; economic recession; incentivesincentivesMechanical Engineeringmedia_common.quotation_subjectSupply chaininventory managementAerospace EngineeringSettore ING-IND/35 - Ingegneria Economico-GestionaleRecessionorder up toComputer Science ApplicationsSupply and demandMicroeconomicsbullwhip effectBullwhip effectService levelEconomicsElectrical and Electronic EngineeringBullwhipVolatility (finance)economic recessionSmoothingmedia_common
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Up-to-Date Supply Chain Management: The Coordinated (S, R) Order-Up-to

2011

This paper presents the mathematical derivation of a new generation of the most largely used periodic review policy in supply chain: the coordinated (S, R) replenishment rule. We first derive the classical order-up-to model and then we modify it to generate the coordinated decision policy equations. We run a numerical simulation on a serial supply chain model to show differences in the two policies. We conclude on the managerial implications related to coordinated replenishment.

Supply chain risk managementMathematical optimizationSupply chain managementComputer simulationComputer scienceOrder up toSupply chain modelBullwhip effectInformation sharingSupply chain
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