Search results for "order up to"
showing 2 items of 2 documents
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…
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.