• Journal of the Korea Society for Simulation
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• v.20 no.2
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• pp.19-27
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• 2011

This study investigates impact of smoothed replenishment ordering policy on the performance measures such as lead time, order fulfillment ratio, and inventory cost. We consider a two-echelon supply chain: a single retailer orders using smoothed order up to replenishment policy and a manufacturer produces the retailer's orders on a make to order basis. Simulation result confirms that lead time from the manufacturer can be reduced by smoothed ordering policy as expected. However, smoothing orders may deteriorate the customer order fulfillment ratio and inventory cost in a retailer. We also observe that variance of manufacturing time contributes more than mean of manufacturing time to both order fulfillment ratio and inventory cost. Therefore, variability of upstream manufacturing time should be minimized.

• Industrial Engineering and Management Systems
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• v.15 no.4
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• pp.385-395
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• 2016

Game theory is a powerful tool for analyzing the Supply chain (SC) with different conflicting elements. Among them, the Stackelberg game is the one in which a player as leader has more power than the other ones as followers. Since in many SC systems one element has, in essence, more power than the others; the Stackelberg game has found many applications in SC studies. In this paper, we apply the Stackelberg game-theoretic approach and the corresponding equilibrium point to formulate and analyze a two echelon VMI SC. Comprehensive computational results on an experimental case are conducted to numerically analyze the performance of VMI system against three groups of critical parameters. Moreover, a critical comparison demonstrates the poorer performance of decentralized VMI system than centralized one. This naturally necessitates designing proper contracts between VMI partners in order to more effectively implement the realistic decentralized system.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2004.05a
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• pp.31-34
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• 2004

This research proposes the lateral transshipment policy that can deal efficiently with stockout in the two-echelon distribution network in supply chain. The lateral transshipment policy can be expected for retailers to response the change of customers' demands efficiently. Because of various factors, such as demand fluctuation, replenishment quantity, lead time, and so on, it is very difficult to decide optimal lateral transshipment time and quantity. We suggest the new lateral transshipment policy based on the service level in this research. The efficiency of this policy is proved by simulation experiments.