2008Commercial ResearchRequires access

A Supply Chain Inventory Model Based on Distribution Center under Demand Uncertainty

Huang Ti-yun

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Abstract

Manufacturers often set up distribution center and the shared safety inventory to replace the sellers′ safety inventory under demand uncertainty,which proves an effective supply chain inventory pattern.In this pattern,the supply chain inventory model based on distribution center can be used to further reduce the total inventory cost on the basis of the same customer service level as well as the Bullwhip Effect to some extent.

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What this paper is about

Manufacturers often set up distribution center and the shared safety inventory to replace the sellers′ safety inventory under demand uncertainty,which proves an effective supply chain inventory pattern.In this pattern,the supply chain inventory model based on distribution center can be used to further reduce the total inventory cost on the basis of the same customer service level as well as the Bullwhip Effect to some extent.

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Available abstract

Manufacturers often set up distribution center and the shared safety inventory to replace the sellers′ safety inventory under demand uncertainty,which proves an effective supply chain inventory pattern.In this pattern,the supply chain inventory model based on distribution center can be used to further reduce the total inventory cost on the basis of the same customer service level as well as the Bullwhip Effect to some extent.

Key concepts: Bullwhip effect, Supply chain, Inventory theory, Distribution center, Service level, Perpetual inventory, Business, Service management

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