37th International Conference on , 2007-10-20

Title : ( A NEW APPROACH TO INVENTORY CONTROL IN A TWO-LEVEL SUPPLY CHAIN SYSTEM WITH POISSON DEMAND )

Authors: Mohammadali Pirayesh ,

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In this paper we consider a two-level supply chain system consisting of one warehouse and one retailer. The retailer faces Poisson demand. We introduce a new approach to inventory control in the supply chain management which is different from the classical policies used in the literature of inventory and production control systems. In this system, the retailer constantly orders a fixed amount of product to the warehouse in a predetermined time interval; i.e., the ordering size and the time interval between any two consecutive orders from the retailer to the warehouse are fixed numbers. The advantage of this policy is that the warehouse is facing a uniform and deterministic demand which simplifies the management of the supply chain. Using queuing theory concepts, we derive the expected total cost per time unit for this system and propose a search algorithm to compute the optimal solution.

Keywords

, Inventory, Queueing systems, Supply chain
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@inproceedings{paperid:1007099,
author = {Pirayesh, Mohammadali},
title = {A NEW APPROACH TO INVENTORY CONTROL IN A TWO-LEVEL SUPPLY CHAIN SYSTEM WITH POISSON DEMAND},
booktitle = {37th International Conference on},
year = {2007},
keywords = {Inventory; Queueing systems; Supply chain management},
}

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%0 Conference Proceedings
%T A NEW APPROACH TO INVENTORY CONTROL IN A TWO-LEVEL SUPPLY CHAIN SYSTEM WITH POISSON DEMAND
%A Pirayesh, Mohammadali
%J 37th International Conference on
%D 2007

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