The synchronization and coordination of material flows is a key element in the supply chain management. To analyze the effects of coordinated replenishment for components, we consider an assembly system with two component-suppliers, one supply-hub and one manufacturer, under stochastic final product demand. We propose three different strategies: (i) the decentralized replenishment, (ii) the coordinated replenishment without coordinated quantity, and (iii) the coordinated replenishment policy with coordinated quantity for infinite planning horizon. We propose optimal decisions for all strategies. Results show that policy (ii) is always better than policy (i). We further identify the conditions under which the third strategy outperforms the other two. Policy (iii) is better on cost saving and service level, only when it satisfies certain conditions. Numerical studies are conducted to validate the model and to derive managerial implications.
| Published in | American Journal of Operations Management and Information Systems (Volume 4, Issue 1) |
| DOI | 10.11648/j.ajomis.20190401.13 |
| Page(s) | 26-38 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2019. Published by Science Publishing Group |
Coordinated Replenishment, Assembly System, Supply-Hub, Supply Chain
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APA Style
Jianhong Yu, Jennifer Shang, Wenchyuan Chiang. (2019). Coordinated Replenishment Policy in an Assembly System Based on Supply-Hub. American Journal of Operations Management and Information Systems, 4(1), 26-38. https://doi.org/10.11648/j.ajomis.20190401.13
ACS Style
Jianhong Yu; Jennifer Shang; Wenchyuan Chiang. Coordinated Replenishment Policy in an Assembly System Based on Supply-Hub. Am. J. Oper. Manag. Inf. Syst. 2019, 4(1), 26-38. doi: 10.11648/j.ajomis.20190401.13
AMA Style
Jianhong Yu, Jennifer Shang, Wenchyuan Chiang. Coordinated Replenishment Policy in an Assembly System Based on Supply-Hub. Am J Oper Manag Inf Syst. 2019;4(1):26-38. doi: 10.11648/j.ajomis.20190401.13
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Download@article{10.11648/j.ajomis.20190401.13,
author = {Jianhong Yu and Jennifer Shang and Wenchyuan Chiang},
title = {Coordinated Replenishment Policy in an Assembly System Based on Supply-Hub},
journal = {American Journal of Operations Management and Information Systems},
volume = {4},
number = {1},
pages = {26-38},
doi = {10.11648/j.ajomis.20190401.13},
url = {https://doi.org/10.11648/j.ajomis.20190401.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20190401.13},
abstract = {The synchronization and coordination of material flows is a key element in the supply chain management. To analyze the effects of coordinated replenishment for components, we consider an assembly system with two component-suppliers, one supply-hub and one manufacturer, under stochastic final product demand. We propose three different strategies: (i) the decentralized replenishment, (ii) the coordinated replenishment without coordinated quantity, and (iii) the coordinated replenishment policy with coordinated quantity for infinite planning horizon. We propose optimal decisions for all strategies. Results show that policy (ii) is always better than policy (i). We further identify the conditions under which the third strategy outperforms the other two. Policy (iii) is better on cost saving and service level, only when it satisfies certain conditions. Numerical studies are conducted to validate the model and to derive managerial implications.},
year = {2019}
}
TY - JOUR T1 - Coordinated Replenishment Policy in an Assembly System Based on Supply-Hub AU - Jianhong Yu AU - Jennifer Shang AU - Wenchyuan Chiang Y1 - 2019/04/26 PY - 2019 N1 - https://doi.org/10.11648/j.ajomis.20190401.13 DO - 10.11648/j.ajomis.20190401.13 T2 - American Journal of Operations Management and Information Systems JF - American Journal of Operations Management and Information Systems JO - American Journal of Operations Management and Information Systems SP - 26 EP - 38 PB - Science Publishing Group SN - 2578-8310 UR - https://doi.org/10.11648/j.ajomis.20190401.13 AB - The synchronization and coordination of material flows is a key element in the supply chain management. To analyze the effects of coordinated replenishment for components, we consider an assembly system with two component-suppliers, one supply-hub and one manufacturer, under stochastic final product demand. We propose three different strategies: (i) the decentralized replenishment, (ii) the coordinated replenishment without coordinated quantity, and (iii) the coordinated replenishment policy with coordinated quantity for infinite planning horizon. We propose optimal decisions for all strategies. Results show that policy (ii) is always better than policy (i). We further identify the conditions under which the third strategy outperforms the other two. Policy (iii) is better on cost saving and service level, only when it satisfies certain conditions. Numerical studies are conducted to validate the model and to derive managerial implications. VL - 4 IS - 1 ER -
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