Estimation of Economical Efficiency in Multi-Echelon Inventory System through Coordination of Inventory Replenishment Period

재고보충주기의 조정을 통한 다단계 재고시스템의 경제성 평가

  • Published : 2007.05.18

Abstract

Recently business enterprises have forced to face in fierce competition in today's global markets due to the short life cycles of products and the higher expectation of customers. Together with continuing advances in communications and transportation technologies, these environments have motivated the continuous evolution of the supply chain and the management techniques. This paper consider three-echelon inventory system which consist of one manufacturer, one distributor and N retailers for a single product under assumption of constant demand. This paper propose the inventory replenishment period using heuristic method and order policy through coordination of inventory replenishment period. The simulation results show that decrease the total cost of the three-echelon inventory system.

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