Simulation of a Two-End-Product Postponement System

T.C. Edwin Cheng (), Jian Li (), C.L. Johnny Wan () and Shouyang Wang ()
Additional contact information
T.C. Edwin Cheng: The Hong Kong Polytechnic University
Jian Li: School of Economics & Management Beijing University of Chemical Technology (BUCT)
C.L. Johnny Wan: The Hong Kong Polytechnic University
Shouyang Wang: Chinese Academy of Sciences Academy of Mathematics & Systems Science

Chapter Chapter 5 in Postponement Strategies in Supply Chain Management, 2010, pp 109-123 from Springer

Abstract: In the last chapter, we have shown that the cost benefits of a postponement systempostponement system are limited when it is implemented to a single end-product supply chain system whose customer demands are discrete and uniformly distributed. To a great extent, a lot size-reorder point system outperforms a postponement systempostponement system when it is operated in its optimal or near optimal total average cost at steady state based on our results. However, it is argued that a postponement systempostponement system may outperform a lot size-reorder point system if the supply chain system offers more than one end-product. This view is coherent with our findings in Chapters 2 and 3. Besides, the analysis would be more valuable if both Poisson and normal distributions normal distribution are considered. In fact, it is more equitable to compare the two systems by an experimental approach instead of their long-run steady states because the steady state may be reached only after infinite periods or a very long time. In order to maintain completeness of our study, a more dynamic system is developed by simulation techniquesimulation technique in this chapter.

Keywords: Order Quantity; Customer Demand; Average Inventory; Total Average Cost; Supply Chain System (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:isochp:978-1-4419-5837-2_5

Ordering information: This item can be ordered from
http://www.springer.com/9781441958372

DOI: 10.1007/978-1-4419-5837-2_5

Access Statistics for this chapter

More chapters in International Series in Operations Research & Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().