Comparison of single-echelon vs. multi-echelon inventory systems using multi-objective stochastic modelling

Recent advancements in inventory management have identified need for investigating benefits of single-echelon and multi-echelon systems. Single-echelon inventory control problems focus on determining the appropriate level of inventory for an individual unit within the supply chain network, while multi-echelon inventory optimisation takes a holistic approach by focusing on the correct levels of inventory across the entire network. This paper presents a stochastic modelling approach for multi-tier supply chains with multiple inventory items. The approach will be used to compare behaviour of single-echelon vs. multi-echelon inventory systems. A multi-objective optimisation method is used to optimise model's behaviour with two conflicting objectives: minimising average inventory across the supply chain and maximising overall fill rate. The results show that single-echelon systems result in higher inventory levels and lower fill rates, while multi-echelon systems result in lower inventory levels while maintaining higher fill rates for the entire supply chain network. The methods are demonstrated on a sample network database.

• Record URL:
  https://doi.org/10.1504/IJLSM.2016.073971
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/17427967
• Supplemental Notes:
  • Copyright © 2016 Inderscience Enterprises Ltd.
• Authors:
  • Ekanayake, Nadeera
  • Joshi, Nilesh
  • Thekdi, Shital A
• Publication Date: 2016

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 255-280
• Serial:
  • International Journal of Logistics Systems and Management
  • Volume: 23
  • Issue Number: 2
  • Publisher: Inderscience Enterprises Limited
  • ISSN: 1742-7967
  • EISSN: 1742-7945
  • Serial URL: http://www.inderscience.com/jhome.php?jcode=ijlsm

Subject/Index Terms

• TRT Terms: Inventory control; Logistics; Optimization; Stochastic programming
• Subject Areas: Administration and Management; Freight Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 01587120
• Record Type: Publication
• Files: TRIS
• Created Date: Jan 15 2016 3:05PM