Dynamic planning design of three level distribution network with horizontal and vertical exchange

Abdennour Ilyas Benfriha, Lamia Triqui-Sari, Aimade Eddine Bougloula and Mohammed Bennekrouf

International Journal of Logistics Systems and Management, 2024, vol. 47, issue 3, 295-326

Abstract: Inventory management in distribution networks remains a challenging task due to the demand nature and the limited storage capacity. In this work, we study a three-level, a multi-product and a multi-period distribution network consisting of a central warehouse, three distribution centres and six wholesalers. Each of them faces a random demand. In order to optimise the inventory management in the distribution network, we first propose to make a horizontal cooperation between actors of the same level in the form of product exchange; then we propose a second approach based on vertical-horizontal cooperation. Both approaches are modelled as a MIP model and solved using the CPLEX solver. The objective of this study is to analyse the performance in terms of costs, quantities in stock and customer satisfaction.

Keywords: inventory management; distribution network; supply chain; product exchange; cooperation. (search for similar items in EconPapers)
Date: 2024
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