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Distribution Planning for a Distributed Multi-echelon Supply Chain under Service Level Constraint  

Park, Gi-Tae (ERP Team LG Display)
Kwon, Ick-Hyun (Department of Systems Management Engineering, Inje University)
Publication Information
Journal of the Korea Safety Management & Science / v.11, no.3, 2009 , pp. 139-148 More about this Journal
Abstract
In a real-life supply chain environment, demand forecasting is usually represented by probabilistic distributions due to the uncertainty inherent in customer demands. However, the customer demand used for an actual supply chain planning is a single deterministic value for each of periods. In this paper we study the choice of single demand value among of the given customer demand distribution for a period to be used in the supply chain planning. This paper considers distributed multi-echelon supply chain and the objective function of this paper is to minimize the total costs, that is the sum of holding and backorder costs over the distribution network under the service level constraint, by using demand selection scheme. Some useful findings are derived from various simulation-based experiments.
Keywords
Multi -echelon Supply Chain; Service Level; Simulation; Demand Percentile;
Citations & Related Records
Times Cited By KSCI : 3  (Citation Analysis)
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