Inventory Positioning in Supply Chain Network: A Service-Oriented Approach
This study develops a mixed-integer linear programming model based on a guaranteed service approach for an inventory positioning problem in a supply chain under the base stock inventory policy. Our proposed model aims to determine appropriate inventory positions and amounts and the optimal service l...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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IEEE
2022-01-01
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| Series: | IEEE Access |
| Subjects: | |
| Online Access: | https://ieeexplore.ieee.org/document/9869807/ |
| _version_ | 1828111154529959936 |
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| author | Nguyen Trong Tri Duc Pham Duc Tai Jirachai Buddhakulsomsiri |
| author_facet | Nguyen Trong Tri Duc Pham Duc Tai Jirachai Buddhakulsomsiri |
| author_sort | Nguyen Trong Tri Duc |
| collection | DOAJ |
| description | This study develops a mixed-integer linear programming model based on a guaranteed service approach for an inventory positioning problem in a supply chain under the base stock inventory policy. Our proposed model aims to determine appropriate inventory positions and amounts and the optimal service level for the supply chain to minimize the total cost of safety inventory holding and shortage. Two demand scenarios, based on normal and empirical distributions, are investigated. An extensive numerical experiment is conducted to illustrate the applicability and effectiveness of our model, especially under empirical distribution. The experiment features a practical network structure and demand data from an industrial user. Moreover, to further validate the experimental results from the mathematical model, they are compared with the result from a simulation model, which is constructed to imitate the operations of the supply chain. The comparison result indicates that the model solution under the empirical demand distribution is close to the simulation regarding the difference in the total cost (less than 1%). This solution significantly outperforms the model solution under the normal demand, which results in a significant difference in total cost (more than 25%) compared to the simulation. |
| first_indexed | 2024-04-11T11:29:16Z |
| format | Article |
| id | doaj.art-5e2827f425d147aba56edfb363108239 |
| institution | Directory Open Access Journal |
| issn | 2169-3536 |
| language | English |
| last_indexed | 2024-04-11T11:29:16Z |
| publishDate | 2022-01-01 |
| publisher | IEEE |
| record_format | Article |
| series | IEEE Access |
| spelling | doaj.art-5e2827f425d147aba56edfb3631082392022-12-22T04:26:11ZengIEEEIEEE Access2169-35362022-01-0110929869300210.1109/ACCESS.2022.32029069869807Inventory Positioning in Supply Chain Network: A Service-Oriented ApproachNguyen Trong Tri Duc0Pham Duc Tai1Jirachai Buddhakulsomsiri2https://orcid.org/0000-0003-1028-0950School of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University, Khlong Nueng, Khlong Luang, ThailandSchool of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University, Khlong Nueng, Khlong Luang, ThailandSchool of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University, Khlong Nueng, Khlong Luang, ThailandThis study develops a mixed-integer linear programming model based on a guaranteed service approach for an inventory positioning problem in a supply chain under the base stock inventory policy. Our proposed model aims to determine appropriate inventory positions and amounts and the optimal service level for the supply chain to minimize the total cost of safety inventory holding and shortage. Two demand scenarios, based on normal and empirical distributions, are investigated. An extensive numerical experiment is conducted to illustrate the applicability and effectiveness of our model, especially under empirical distribution. The experiment features a practical network structure and demand data from an industrial user. Moreover, to further validate the experimental results from the mathematical model, they are compared with the result from a simulation model, which is constructed to imitate the operations of the supply chain. The comparison result indicates that the model solution under the empirical demand distribution is close to the simulation regarding the difference in the total cost (less than 1%). This solution significantly outperforms the model solution under the normal demand, which results in a significant difference in total cost (more than 25%) compared to the simulation.https://ieeexplore.ieee.org/document/9869807/Base stock policyempirical demandguaranteed service approachinventory positioningmixed-integer linear programmingmulti-echelon inventory system |
| spellingShingle | Nguyen Trong Tri Duc Pham Duc Tai Jirachai Buddhakulsomsiri Inventory Positioning in Supply Chain Network: A Service-Oriented Approach IEEE Access Base stock policy empirical demand guaranteed service approach inventory positioning mixed-integer linear programming multi-echelon inventory system |
| title | Inventory Positioning in Supply Chain Network: A Service-Oriented Approach |
| title_full | Inventory Positioning in Supply Chain Network: A Service-Oriented Approach |
| title_fullStr | Inventory Positioning in Supply Chain Network: A Service-Oriented Approach |
| title_full_unstemmed | Inventory Positioning in Supply Chain Network: A Service-Oriented Approach |
| title_short | Inventory Positioning in Supply Chain Network: A Service-Oriented Approach |
| title_sort | inventory positioning in supply chain network a service oriented approach |
| topic | Base stock policy empirical demand guaranteed service approach inventory positioning mixed-integer linear programming multi-echelon inventory system |
| url | https://ieeexplore.ieee.org/document/9869807/ |
| work_keys_str_mv | AT nguyentrongtriduc inventorypositioninginsupplychainnetworkaserviceorientedapproach AT phamductai inventorypositioninginsupplychainnetworkaserviceorientedapproach AT jirachaibuddhakulsomsiri inventorypositioninginsupplychainnetworkaserviceorientedapproach |