Inventory Policies Under Service Level Target : Comparison in Terms of Relevant Costs and Bullwhip Effect
(2022) 21st International Multidisciplinary Conference on Reliability and Statistics in Transportation and Communication, RelStat 2021 In Lecture Notes in Networks and Systems 410. p.249-258- Abstract
Global shifts in technology and demand patterns might necessitate a firm’s switching to another inventory management system. The following five popular types of inventory policies are compared in terms of their impact on relevant inventory costs and bullwhip effect: newsvendor, order-up-to, min-max, reorder-point order-quantity, and economic order quantity. The model of four-stage supply chain presented in this research consists of a retailer, a wholesaler, a distributor, and a supplier. The objective of each member of the supply chain is to set order quantities and reorder points that maintain a required service level of inventory over multiple periods for each policy. Analysis and numerical experiments confirm differences in outcomes... (More)
Global shifts in technology and demand patterns might necessitate a firm’s switching to another inventory management system. The following five popular types of inventory policies are compared in terms of their impact on relevant inventory costs and bullwhip effect: newsvendor, order-up-to, min-max, reorder-point order-quantity, and economic order quantity. The model of four-stage supply chain presented in this research consists of a retailer, a wholesaler, a distributor, and a supplier. The objective of each member of the supply chain is to set order quantities and reorder points that maintain a required service level of inventory over multiple periods for each policy. Analysis and numerical experiments confirm differences in outcomes between the policies. Comparisons between each policy reveal policies that incur the highest or lowest values of the inventory cost, shortage costs, holding costs, setup costs, variability, and bullwhip effect. The study also provides findings about the possibility of lower bullwhip effect or even its absence with certain inventory policies.
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- author
- Ovezmyradov, Berdymyrat LU
- organization
- publishing date
- 2022
- type
- Chapter in Book/Report/Conference proceeding
- publication status
- published
- subject
- keywords
- Bullwhip effect, Inventory cost, Logistics, Simulation
- host publication
- Reliability and Statistics in Transportation and Communication - Selected Papers from the 21st International Multidisciplinary Conference on Reliability and Statistics in Transportation and Communication, RelStat2021
- series title
- Lecture Notes in Networks and Systems
- editor
- Kabashkin, Igor ; Yatskiv, Irina and Prentkovskis, Olegas
- volume
- 410
- pages
- 10 pages
- publisher
- Springer Science and Business Media B.V.
- conference name
- 21st International Multidisciplinary Conference on Reliability and Statistics in Transportation and Communication, RelStat 2021
- conference location
- Virtual, Online
- conference dates
- 2021-10-14 - 2021-10-15
- external identifiers
-
- scopus:85126257027
- ISSN
- 2367-3389
- 2367-3370
- ISBN
- 978-3-030-96195-4
- 978-3-030-96196-1
- DOI
- 10.1007/978-3-030-96196-1_22
- language
- English
- LU publication?
- yes
- id
- 0db49b64-ad97-4025-ad66-72f1d3b4dd59
- date added to LUP
- 2022-05-02 16:01:03
- date last changed
- 2024-05-30 11:43:39
@inproceedings{0db49b64-ad97-4025-ad66-72f1d3b4dd59,
abstract = {{<p>Global shifts in technology and demand patterns might necessitate a firm’s switching to another inventory management system. The following five popular types of inventory policies are compared in terms of their impact on relevant inventory costs and bullwhip effect: newsvendor, order-up-to, min-max, reorder-point order-quantity, and economic order quantity. The model of four-stage supply chain presented in this research consists of a retailer, a wholesaler, a distributor, and a supplier. The objective of each member of the supply chain is to set order quantities and reorder points that maintain a required service level of inventory over multiple periods for each policy. Analysis and numerical experiments confirm differences in outcomes between the policies. Comparisons between each policy reveal policies that incur the highest or lowest values of the inventory cost, shortage costs, holding costs, setup costs, variability, and bullwhip effect. The study also provides findings about the possibility of lower bullwhip effect or even its absence with certain inventory policies.</p>}},
author = {{Ovezmyradov, Berdymyrat}},
booktitle = {{Reliability and Statistics in Transportation and Communication - Selected Papers from the 21st International Multidisciplinary Conference on Reliability and Statistics in Transportation and Communication, RelStat2021}},
editor = {{Kabashkin, Igor and Yatskiv, Irina and Prentkovskis, Olegas}},
isbn = {{978-3-030-96195-4}},
issn = {{2367-3389}},
keywords = {{Bullwhip effect; Inventory cost; Logistics; Simulation}},
language = {{eng}},
pages = {{249--258}},
publisher = {{Springer Science and Business Media B.V.}},
series = {{Lecture Notes in Networks and Systems}},
title = {{Inventory Policies Under Service Level Target : Comparison in Terms of Relevant Costs and Bullwhip Effect}},
url = {{http://dx.doi.org/10.1007/978-3-030-96196-1_22}},
doi = {{10.1007/978-3-030-96196-1_22}},
volume = {{410}},
year = {{2022}},
}