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EnglishThe planning of a supply chain (SC) subject to market demand uncertainty is challenging in regards to defining update mechanisms that deal with demand variations. This study addresses this challenge and proposes a new reorder point update procedure for order-up-to-level (OUTL) policies in continuous review systems. The new procedure modifies the classical OUTL policy by introducing absorption inventory, a concept that changes reorder points and lot sizes according to demand variations. Results obtained through a discrete event simulation based on real-world data provided by a Brazilian company show that the proposed order policy provides better performance, particularly in terms of bullwhip effect reduction and improved service level.
| Titolo: | Order-up-to-level policy update procedure for a supply chain subject to market demand uncertainty |
| Autori interni: | |
| Data di pubblicazione: | 2017 |
| Rivista: | |
| Handle: | http://hdl.handle.net/20.500.11769/313110 |
| Appare nelle tipologie: | 1.1 Articolo in rivista |
File in questo prodotto:
http://hdl.handle.net/20.500.11769/313110
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