This is a multi-echelon inventory model and demonstrates the benefits of computing safety stock based on multi-echelon considerations rather than single-echelon calculations.The network is plant->stocking point-> Distributor-> Retailer. The mean demand of retailer is 100 and sd-30. Since the network has only one sp/one distributor/one retailer, the same demand propagates up (subject to inventory netting). You can do safety stock computations at distributor and SP based on the classical safety stock formula. Post that keep reducing the safety stock at the distributor and see if the service level is getting impacted. Do you think you can manage with SS less than what is given by the classical formula (applied at distributor and stocking point?)

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Calculating EOQ using classical inventory model

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Little's Law has various applications in Supply Chain. One of the application is the impact of Transit Times on In Transit Stocks and Total Stocks. This example demonstrates the relationship and the trade-off.

Supply Chain Transportation Logistics

Author: Abhijith N

Just hit the simulate button to see the simulation run. You can add displays and see the

-       Inventory States

-          Inflow

-          Out flow

For each node.

Assumption for base model:

 

1.       Normal stationary demand at each end node.

2.       Separate online and store demand

3.       LT between nodes can be set.

4.       Inventory policy is fixed base stock level at each node.

5.       Single item

 

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It's a model simulating well-known beer game in supply chain management. In this supply chain simulation, there are four sub-levels namely order, policy, back-order and cost level which reflect different kind of factors in a supply chain.

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First try of fleet mgmt

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Supply Chain

It's a model simulating well-known beer game in supply chain management. In this supply chain simulation, there are four sub-levels namely order, policy, back-order and cost level which reflect different kind of factors in a supply chain.

Supply Chain Beer Game

Supply Chain

Calculating EOQ using classical inventory model

Supply Chain

Supply Chain

Value Chain Supply Chain Oil

Supply Chain

Supply Chain

Little's Law has various applications in Supply Chain. One of the application is the impact of Transit Times on In Transit Stocks and Total Stocks. This example demonstrates the relationship and the trade-off.

Supply Chain Transportation Logistics

Value Chain Supply Chain Oil

Supply Chain

Calculating EOQ using classical inventory model

Supply Chain