Inventory control management is an important concern for operational managers and it frequently challenges them in determining the right amount of inventories throughout the supply chain network. The challenge can become more complicated as consequences to decision making to bare cost for holding much inventory and to maintain quality of service for existing customers. Especially in arbore-scent multi-echelon settings, this tradeoff becomes particularly acute when the organization faces uncertainty in the supply of a key resource. In this research, we look at the distribution in a two-echelon divergent system that considers periodic review in determining the optimal order-up-to level and rationing parameters to maintain customer level objective. We consider three models that can provide assistance to inventory managers/planners for quick and effective in determining a rationing parameter that is flexible and effective with the dynamic nature of the demand during the rationing process. Performance comparisons between these models are given for various problems including the application in real operational/planning setting, and least deviation from the intended objective amongst them suggests otherwise a better policy to adopt.
Inventory control management is an important concern for operational managers and it frequently challenges them in determining the right amount of inventories throughout the supply chain network. The challenge can become more complicated as consequences to decision making to bare cost for holding much inventory and to maintain quality of service for existing customers. Especially in arbore-scent multi-echelon settings, this tradeoff becomes particularly acute when the organization faces uncertainty in the supply of a key resource. In this research, we look at the distribution in a two-echelon divergent system that considers periodic review in determining the optimal order-up-to level and rationing parameters to maintain customer level objective. We consider three models that can provide assistance to inventory managers/planners for quick and effective in determining a rationing parameter that is flexible and effective with the dynamic nature of the demand during the rationing process. Performance comparisons between these models are given for various problems including the application in real operational/planning setting, and least deviation from the intended objective amongst them suggests otherwise a better policy to adopt.
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