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Evaluation of robustness of a multi-echelon inventory model for complex distribution systems

: Fang, Dianjun; Li, Cong


Institution of Engineering and Technology -IET-:
IET International Conference on Information Science and Control Engineering, ICISCE 2012. Conference Proceedings : 7-9 December 2012, Shenzhen, China
London: IET, 2012
ISBN: 978-1-84919-641-3
5 S.
International Conference on Information Science and Control Engineering (ICISCE) <2012, Shenzhen>
Fraunhofer IML ()
logistics; Supply Chain; distribution; simulation; inventory management

Because of the complexity of inventory planning for distribution systems, varied kinds of inventory models have been built up to support the decision making. The performance of these analytical models in real dynamic market, nevertheless, is still questionable. This paper analyzes the evaluation of robustness of inventory models. After introducing a multi-echelon inventory model that is capable of efficiently optimizing inventory policies for any kinds of distribution systems, an OTD-NET based simulation model is constructed to reproduce the material flow throughout the distribution system under real scenarios. The subsequent case study quantifies the effect of dynamic influencing factors and gives beneficial tips for decision makers.