An inventory control model with interconnected logistic services for vendor inventory management

Yanyan Yang, Shenle Pan () and Eric Ballot ()
Additional contact information
Yanyan Yang: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique
Shenle Pan: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique
Eric Ballot: CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper proposes an inventory control model taking advantage of interconnected logistic services in the Physical Internet for fast-moving consumer goods (FMCG) sector. Unlike current hierarchical inventory model where the source of each is pre-assigned, the goods are stored and distributed in an interconnected and open network of PI-hubs which enables storage capacity and transportation sharing among different companies around the network. As a result, theoretically, the suppliers can push their goods all around the network and the retailers can be served by any hub in the network. A non-linear global optimization inventory model to minimize the total logistic costs is proposed and a heuristic using simulated annealing is applied to solve the problem. Numerical experiments are taken to compare the performance of the proposed PI inventory model and classic inventory control model for different settings of a typical supply network. Results suggest that the PI inventory control model can always reduce the total logistic cost while reaching a comparable or improved end customer service level.

Keywords: Inventory control; Physical Internet; Optimization (search for similar items in EconPapers)
Date: 2015-07-06
Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-01217344v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Second International Conference of Physical Internet , CGS, MINES ParisTech, France, Jul 2015, PARIS, France

Downloads: (external link)
https://minesparis-psl.hal.science/hal-01217344v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01217344

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().