On the Selection of Demand Used in Planning for the Distribution Networks

  • Jun Geol, Baek (Department of Industrial System Engineering, Induk Institute of Technology)
  • Published : 2004.03.01

Abstract

This paper first addresses a distribution planning method on centrally controlled supply chain. The distribution channels are assumed to be network of arborescence form. For such distribution networks, this study proposes a distribution planning scheme when the demands for retail sites are provided for a given planning horizon. As the planning horizon rolls forward, for a new horizon, forecasted demand distributions of periods in the horizon are updated. An idea of controlling customer service level by the selection of demand to be used in the planning (Demand Used in Planning, DUP) from the forecasted values is also discussed.

Keywords

References

  1. Afentakis, P., B. Gavish, and U. S. Karmarkar, 'Computationally Efficient Optimal Solutions to the Lot-Sizing Problem in Multi-Stage Assembly Systems', Management Science, Vol.30, pp.222-239, 1984 https://doi.org/10.1287/mnsc.30.2.222
  2. Baker, K. R., 'Lot-Sizing Procedures and a Standard Data Set: A Reconciliation of the Literature', Journal of Manufacturing and Operations Management, Vol.2, pp.199-221, 1989
  3. Bessler, S. A., and A. J. Veinott, 'Optimal Policy for a Multi-Echelon Inventory Model', Naval Research Logistics Quarterly, Vol.13, pp.389-490, 1966
  4. Blackburn, J. D., and R. A. Millen, ‘Improved Heuristic for Multi-Echelon Requirements Planning Systems’, Management Science, Vol.28, pp.44-56, 1982
  5. Clark, A. J. and H. Scarf, ‘Optimal Policies for a Multi-Echelon Inventory Problem’, Management Science, Vol.6, pp.475-490, 1960
  6. Diks, E. B., and A. G. De Kok, 'Optimal Control of a Divergent Multi-Echelon Inventory System' European Journal of Operational Research, Vol.111, pp.75-97, 1998
  7. Diks, E. B., and A. G. De Kok, ‘Computational Results for the Control of a Divergent N-Echelon Inventory System’, International Journal of Production Economics, Vol.59, pp.327-336, 1999
  8. Erenguc, S. S., N. C. Simpson, and A J Vakharia, 'Integrated Production/Distribution Planning in Supply Chains: An Invited Review', European Journal of Operational Research, Vol.115, pp.219-236, 1999 https://doi.org/10.1016/S0377-2217(98)90299-5
  9. Federgruen, A , 'Centralized Planning Models for Multi-Echelon Inventory Systems under Uncertainty, in S. C. Graves, A H. G. Rinnooy Kan, and P. H. Zipkin(Eds.)', Logistics of Production and Inventory, North-Holland, Amsterdam, pp.133-174, 1993
  10. Silver, E. A., and H. C. Meal, 'A Heuristic for Selecting Lot Size Requirements for the Case of a Deterministic Time-Var$\gamma$ing Demand Rate and Discrete Opportunities for Replenishment', Production and Inventory Management, Vol.14, pp.64-74, 1973
  11. Verrijdt, J H. C. M., and A G. De Kok, ‘Distribution Planning for a Divergent N-Echelon Networks without Intermediate Stocks under Service Restrictions’, International Journal of Production Economics, Vol.38, pp.225-243, 1995
  12. Wagner, H. M., and T. M. Whitin, 'Dynamic Version of the Economic Lot Size Model', Management Science, Vol.5, pp.89-96, 1958 https://doi.org/10.1287/mnsc.5.1.89
  13. Zangwill, W. I, 'A Deterministic Multi-Period Production Scheduling Model with Backlogging', Management Science, Vol.13, pp.105-119, 1966 https://doi.org/10.1287/mnsc.13.1.105