Observations on material flow in supply chains
Pages 1446 - 1451
Abstract
This paper summarizes one group of recent simulation studies comparing replenishment strategies. Time-phased planning, implemented using DRP and MRP logic, continuous-review reorder point (ROP) and single-card Kan-ban (KBN) systems are considered. These differ in terms of decision-making information, logic and integration requirements. Experimental results have been statistically analyzed and explained using simple stochastic models. Steps have also been taken to evaluate which strategies are most suitable under various demand patterns, levels of uncertainty and capacity constraints. Results show that DRP/MRP is superior under time-varying demand, regardless of whether or not capacity constraints are present. With no capacity constraints and level demand, ROP is superior to KBN, in part because it considers backorder information. With capacity constraints behavior is complicated by queuing effects. Under level demand, KBN may slightly outperform ROP, given assumptions of equal lot sizes, order placement delays and transportation times.
References
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Enns, S. T., and P. Suwanruji. 2003. A simulation test bed for production and supply chain modeling, Proceedings of the 2003 Winter Simulation Conference, ed. Chick, S., Sanchéz, P. J., Ferrin, S. and Morrice, D. J., 1174--1182. Piscataway, New Jersey: IEEE.
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Enns, S. T., and L. Li. 2004. Optimal lot-sizing with capacity constraints and auto-correlated interarrival times. Proceedings of the 2004 Winter Simulation Conference, ed. Ingalls, R. G., Rossetti, M. D., Smith, J. S, and Peters, B. A., 1073--1078. Piscataway, New Jersey: IEEE.
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Enns, S. T., and P. Suwanruji. 2005. Lot-sizing within capacity constrained manufacturing systems using time-phased planning. Proceedings of the 2005 Winter Simulation Conference, ed. Kuhl, M. E., Steiger, N. M., Armstrong, F. B, and Joines, J. A., 1433--1440. Piscataway, New Jersey: IEEE.
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Suwanruji, P., and S. T. Enns. 2002. Information and logic requirements for replenishment systems. International Journal of Operations and Quantitative Management, 8 (3&4), 149--164.
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Suwanruji, P., and S. T. Enns. 2004. Evaluating the performance of supply chain simulations with trade-offs between multiple objectives. Proceedings of the 2004 Winter Simulation Conference, ed. Ingalls, R. G., Rossetti, M. D., Smith, J. S, and Peters, B. A., 1399--1403. Piscataway, New Jersey: IEEE.
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Suwanruji, P., and S. T. Enns. 2006a. Comparison of supply chain replenishment strategies in a non-capacitated distribution system. International Journal of Risk Assessment and Management, Special Issue on Supply Chain Management, forthcoming.
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Suwanruji, P. and S. T. Enns. 2006b, Evaluating the effects of capacity constraints and demand patterns on supply chain replenishment strategies. International Journal of Production Research, forthcoming.
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- Observations on material flow in supply chains
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Published In
December 2006
2429 pages
ISBN:1424405017
- Editors:
- L. Felipe Perrone,
- Barry G. Lawson,
- Jason Liu,
- Frederick P. Wieland,
- General Chair:
- David Nicol,
- Program Chair:
- Richard Fujimoto
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- IIE: Institute of Industrial Engineers
- ASA: American Statistical Association
- IEICE ESS: Institute of Electronics, Information and Communication Engineers, Engineering Sciences Society
- IEEE-CS\DATC: The IEEE Computer Society
- SIGSIM: ACM Special Interest Group on Simulation and Modeling
- NIST: National Institute of Standards and Technology
- (SCS): The Society for Modeling and Simulation International
- INFORMS-CS: Institute for Operations Research and the Management Sciences-College on Simulation
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Winter Simulation Conference
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Published: 03 December 2006
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Overall Acceptance Rate 3,413 of 5,075 submissions, 67%
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