Supply chain network design with coordinated inventory control

Agus Darmawan; Hartanto Wijaya Wong; Anders Thorstenson

doi:10.1016/j.tre.2020.102168

Supply chain network design with coordinated inventory control

Agus Darmawan^*, Hartanto Wijaya Wong, Anders Thorstenson

^*Corresponding author for this work

Department of Economics and Business Economics

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

10 Citations (Scopus)

126 Downloads (Pure)

Abstract

In this paper, we present models and solution methods for supply chain network design that not only integrate the location-transportation and inventory problems, but also consider the implementation of coordinated inventory control in the network. We compare two different strategies differentiated by whether or not coordinated inventory control is implemented. Due to the complexity of the optimization problems, we develop heuristic methods to solve the problems generated by the two strategies. The numerical results show the benefits of considering coordinated inventory control by reducing the inventory as well as the total costs in the supply chain network. The structure of the network can also be affected by the coordinated inventory control. The effects are most pronounced when the inventory holding cost rate is high.

Original language	English
Article number	102168
Journal	Transportation Research. Part E: Logistics and Transportation Review
Volume	145
Number of pages	26
ISSN	1366-5545
DOIs	https://doi.org/10.1016/j.tre.2020.102168
Publication status	Published - Jan 2021

Keywords

Coordination
Fill rate
Heuristics
Inventory control
Stochastic models
Supply chain network design

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10.1016/j.tre.2020.102168

Darmawan_Wong_Thorstenson_TR_E_2021_AMAccepted manuscript, 1.86 MBLicence: CC BY-NC-ND

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title = "Supply chain network design with coordinated inventory control",

abstract = "In this paper, we present models and solution methods for supply chain network design that not only integrate the location-transportation and inventory problems, but also consider the implementation of coordinated inventory control in the network. We compare two different strategies differentiated by whether or not coordinated inventory control is implemented. Due to the complexity of the optimization problems, we develop heuristic methods to solve the problems generated by the two strategies. The numerical results show the benefits of considering coordinated inventory control by reducing the inventory as well as the total costs in the supply chain network. The structure of the network can also be affected by the coordinated inventory control. The effects are most pronounced when the inventory holding cost rate is high.",

keywords = "Coordination, Fill rate, Heuristics, Inventory control, Stochastic models, Supply chain network design",

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Supply chain network design with coordinated inventory control. / Darmawan, Agus; Wong, Hartanto Wijaya ; Thorstenson, Anders.
In: Transportation Research. Part E: Logistics and Transportation Review, Vol. 145, 102168, 01.2021.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

TY - JOUR

T1 - Supply chain network design with coordinated inventory control

AU - Darmawan, Agus

AU - Wong, Hartanto Wijaya

AU - Thorstenson, Anders

PY - 2021/1

Y1 - 2021/1

N2 - In this paper, we present models and solution methods for supply chain network design that not only integrate the location-transportation and inventory problems, but also consider the implementation of coordinated inventory control in the network. We compare two different strategies differentiated by whether or not coordinated inventory control is implemented. Due to the complexity of the optimization problems, we develop heuristic methods to solve the problems generated by the two strategies. The numerical results show the benefits of considering coordinated inventory control by reducing the inventory as well as the total costs in the supply chain network. The structure of the network can also be affected by the coordinated inventory control. The effects are most pronounced when the inventory holding cost rate is high.

AB - In this paper, we present models and solution methods for supply chain network design that not only integrate the location-transportation and inventory problems, but also consider the implementation of coordinated inventory control in the network. We compare two different strategies differentiated by whether or not coordinated inventory control is implemented. Due to the complexity of the optimization problems, we develop heuristic methods to solve the problems generated by the two strategies. The numerical results show the benefits of considering coordinated inventory control by reducing the inventory as well as the total costs in the supply chain network. The structure of the network can also be affected by the coordinated inventory control. The effects are most pronounced when the inventory holding cost rate is high.

KW - Coordination

KW - Fill rate

KW - Heuristics

KW - Inventory control

KW - Stochastic models

KW - Supply chain network design

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DO - 10.1016/j.tre.2020.102168

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VL - 145

JO - Transportation Research. Part E: Logistics and Transportation Review

JF - Transportation Research. Part E: Logistics and Transportation Review

M1 - 102168

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Supply chain network design with coordinated inventory control

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