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An Operational Strategy for Inventory Control of Networked Regional Distribution Centers  

Kim, Byeong-Chan (Division of Advnaced Industrial Engineering, Kyonggi University)
Choi, Jin-Yeong (Division of Advnaced Industrial Engineering, Kyonggi University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.31, no.3, 2008 , pp. 110-116 More about this Journal
Abstract
Operational strategy for inventory control in the distribution system has been given attention. If an individual enterprise implements the strategy, it is not easy to gain scale merits because of limited quantity or burden of inventory. In this study, we propose an operational strategy for inventory control that considers managerial integration of regional distribution centers (RDCs) and present a model of it. In a network of several RDCs, they could share inventory information and supply parts for others in case of an inventory shortage. And a numerical example of the network is illustrated, which compares two operational strategies, integration management of RDCs and individual management of them. The result shows total cost reduction in the strategy of integration management through the efficient inventory control of multi-echelon distribution.
Keywords
Inventory; Physlcal Distribution; Multi-Echelon; Integration network;
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