A Dynamic Replenishment System for Integrating Supply Chain Functions

In this paper, an integrated supply chain (SC) model comprising both warehousing and transport functions is developed to help reduce SC inventory levels and total costs while maintaining and/or improving customer service levels under dynamic operating conditions. The dynamic replenishment system (DRS) is first defined in the context of a mixed integer programming (MIP) model. However, due to the unacceptably long computation times associated with the MIP formulation, a new heuristic algorithm (DRS heuristic) is developed to find good, potentially near-optimal solutions to the same static SC problem instances. The performance of the DRS heuristic is subsequently evaluated under dynamic SC conditions with the aid of discrete event simulation. The DRS heuristic is embedded into the ProModel simulation model as a callable subroutine that can be used to make replenishment and transport decisions throughout the SC (DRS simulation model). Experimental results confirm that operating an SC under DRS simulation model constructs is a win-win relationship for SC partners. The DRS has proven to be able to meet its main goal of reacting effectively/efficiently to normal or unplanned SC operations.


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  • Accession Number: 01051326
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 3 2007 1:28PM