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Digital Library

of the European Council for Modelling and Simulation

 

Title:

Optimized Multi-Echelon Inventory Policies In Robust Distribution Networks

Authors:

Katja Klingebiel, Cong Li

Published in:

 

(2011).ECMS 2011 Proceedings edited by: T. Burczynski, J. Kolodziej, A. Byrski, M. Carvalho. European Council for Modeling and Simulation. doi:10.7148/2011 

 

ISBN: 978-0-9564944-2-9

 

25th European Conference on Modelling and Simulation,

Jubilee Conference

Krakow, June 7-10, 2011

 

Citation format:

Klingebiel, K., & Li, C. (2011). Optimized Multi-Echelon Inventory Policies In Robust Distribution Networks. ECMS 2011 Proceedings edited by: T. Burczynski, J. Kolodziej, A. Byrski, M. Carvalho (pp. 573-579). European Council for Modeling and Simulation. doi:10.7148/2011-0573-0579

DOI:

http://dx.doi.org/10.7148/2011-0573-0579

Abstract:

To cope with current turbulent market demands, more robust inventory policies are needed for distribution networks, to lower the inventory cost as well as maintain high responsiveness. This paper analyzes the inventory policies in the context of complex multi- echelon distribution networks and proposes an optimization and simulation integrating approach to robust inventory policies selection for multi-echelon distribution      networks. Based on the existing approximation approaches designed primarily for two- echelon inventory model, an analytical multi-echelon inventory model with an efficient optimization algorithm is presented. Through systematic parameter adjustment, “optimal” inventory policies are suggested by this model. In the next step, a simulation model is applied to evaluate the proposed solutions under market dynamics, so that the most favorable ones may be selected. Finally, a case study is conducted and future research directions are suggested.

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