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Digital
Library of the European Council for Modelling and Simulation |
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Title: |
Delivery Risk In A Supply
Chain With A Dominating Member: Modeling The Effect Of The Inventory Policy |
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Authors: |
Ildiko Gelanyi,
Peter Juhasz, Janos Szaz |
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Published in:
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(2019). ECMS 2019
Proceedings Edited by: Mauro Iacono, Francesco Palmieri, Marco Gribaudo,
Massimo Ficco, European Council for Modeling and
Simulation. DOI: http://doi.org/10.7148/2019 ISSN:
2522-2422 (ONLINE) ISSN:
2522-2414 (PRINT) ISSN:
2522-2430 (CD-ROM) 33rd International ECMS Conference on Modelling and Simulation, Caserta, Italy, June 11th
– June 14th, 2019 |
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Citation
format: |
Ildiko Gelanyi, Peter Juhasz,
Janos Szaz (2019). Delivery Risk In A Supply Chain
With A Dominating Member: Modeling The Effect Of The Inventory Policy, ECMS 2019 Proceedings Edited by: Mauro Iacono, Francesco Palmieri,
Marco Gribaudo, Massimo Ficco
European Council for Modeling and Simulation. doi: 10.7148/2019-0117 |
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DOI: |
https://doi.org/10.7148/2019-0117 |
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Abstract: |
This paper
simulates a three-member supply chain with delivery risk by a stochastic
model based on the Prékopa-Ziermann model. The
research aims to identify cases where the influencing power of a dominating
supply chain member is needed to keep inventory at its optimum for the whole
supply chain to maximize competitiveness. We set up a supply chain in which
the production phases take place at locations geographically remote from each
other. Thus, it is not only the timing of deliveries but also the duration of
the distribution that needs to be managed as a random process. Introducing
cost factors into the model allows us to get a more comprehensive picture of
the profitability and apply our results for other economic and financial
problems. We found that it is not only the behaviour
of other chain members but also the level of margin provided that drives the
inventory behaviour of the member firms. The
overuse bargaining power of the dominating player to push down margins of
other supply chain members might lead to increased risk and reduced
competitiveness of the whole chain. |
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