A Supply Chain Inventory Model Based on Distribution Center under Demand Uncertainty
Huang Ti-yun
Abstract
Huang Ti-yun
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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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