Supply Chain Replanning Considering Balance of Supply and Demand

Supply Chain (SC) can balance demands with supply activities as executing Supply Chain Planning (SCP). The fluctuated demands, however, will break the balance between demand and supply. It means that the present SCP is useless in responding the changed demands. Thus it is necessary for SCP to be updated with changed demands. We call this procedure as Supply Chain Replanning. However, the existing measures for SC can not deal with the balance between supply and demand so that they can not detect effectively the timing of replanning. For this reason, a new performance measure, Balancing Point, is developed using momentum, a concept of Physics. It can treat the balance between supply and demand. Also, a replanning method based on Balancing Point is proposed. The proposed method is more effective than the existing replanning method, periodic replanning method and net inventory method.

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