Document Type

Article

Publication Date

2007

Publication Title

International Journal of Applied Management and Technology

Volume

5

Issue

2

Pages

34-43

Abstract

This paper deals with the application of stochastic inventory model to the three-tier supply chain and verifying the values obtained by mathematical model with discrete event simulation. We investigate three-stage serial supply chain with stochastic demand and fixed replenishment lead-time. Inventory holding costs are charged at each stage, and each stage may incur a consumer backorder penalty cost charged by primary supplier to secondary supplier. The customer-demand follows Poisson distribution. We implement Base Stock model for inventory control at both suppliers. Computer simulation is then designed in such a way that it satisfied all the assumptions for mathematical model. Simulation is run to validate the results obtained from the mathematical model.

Comments

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Original Publication Citation

Verma, A. K. (2007). Stochastic models for enhancing agility of supply chains. International Journal of Applied Management and Technology, 5(2), 34-43.

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