Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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A Simulation Study for the Inventory Pooling Effect

재고풀링효과의 시뮬레이션 연구

  • Jung, Jaeheon (School of Business Administration, Pukyong National University)
  • Received : 2012.10.15
  • Accepted : 2012.12.10
  • Published : 2012.12.31
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Abstract

We analyzed the effect of inventory pooling on the system where multiple depot was used to replenish retailers and where inventories are kept only on the depots. Inventory pooling consists of inventory integration and inventory exchange. We used simulation for checking the cost saving effect of reducing the number of depot (Inventory Integration) for the case when inventories kept on every depots are commonly used for all retailers when certain depot have stock out for their retailer assigned to them (Inventory Exchange) with the constraint of service level. Simulation on wide range of parameter settings results show that cost saving effect from inventory integration diminishes when transportation cost between depot and retailers or stock out cost, or retailer number increases. The effect becomes stronger when the demands on retailers have bigger variance or average. Also the results show that the cost saving effect from inventory exchange becomes stronger on the same situation when inventory integration effect becomes stronger.

Keywords

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Cited by

  1. 시뮬레이션을 통한 2단계 재고시스템에서의 재고정책 비교연구 vol.38, pp.3, 2012, https://doi.org/10.11627/jkise.2015.38.3.136