Supply chain network design with coordinated inventory control
Penulis/Author
Ir. Agus Darmawan, S.T., M.S., Ph.D., IPM., ASEAN Eng. (1); Hartanto Wong (2); Anders Thorstenson (3)
Tanggal/Date
2021
Kata Kunci/Keyword
Abstrak/Abstract
In this paper, we present models and solution methods for supply chain network design that not
only integrate the location-transportation and inventory problems, but also consider the implementation
of coordinated inventory control in the network. We compare two different strategies
differentiated by whether or not coordinated inventory control is implemented. Due to the
complexity of the optimization problems, we develop heuristic methods to solve the problems
generated by the two strategies. The numerical results show the benefits of considering coordinated
inventory control by reducing the inventory as well as the total costs in the supply chain
network. The structure of the network can also be affected by the coordinated inventory control.
The effects are most pronounced when the inventory holding cost rate is high.