A global simulation-optimisation approach for inventory management in a decentralised supply chain. Issue 2 (3rd April 2017)

• Record Type: Journal Article
• Authors: Argilaguet Montarelo, Lidia; Glardon, Rémy; Zufferey, Nicolas
• Is Part Of: Supply chain forum. Volume 18:Issue 2(2017)
• Page Start: 112
• Page End: 119
• Publication Date: 2017-04-03
• Subjects: Inventory management -- supply chain -- optimisation; Business logistics -- Periodicals; 658.7
• DOI: Https://www.tandfonline.com/doi/10.1080/16258312.2017.1305255
• Languages: English
• ISSNs: 1625-8312

Abstract

ABSTRACT: The optimal calibration of inventory management policies in a multi-echelon linear supply chain (SC) constitutes a complex problem. The difficulty to provide a clear and unique answer leads to frustration in using serious games for educational purposes. In this work, a simulation-based optimisation approach, using a dynamic tabu search metaheuristic, is developed and applied to a specific case of a four-echelon linear SC. A stochastic demand with constant mean is used and different service levels to the market are considered. The results indicate significant differences of the required on-hand inventory, cost contributions and cost element importance between the different echelons. The non-linear influence of the service level on the various parameters and costs is also observed. The obtained results are consistent and provide a clear answer to the stated problem. The methodology developed can be easily generalised to other cases.