NDLI: Construction of two-stages logistics system considering service ratio and distribution of products for reduction of inventory and stock-out under uncertain demand

Content Provider	IEEE Xplore Digital Library
Author	Arakawa, M. Toyooka, Y.
Copyright Year	2010
Description	Author affiliation: Graduate School of Science and Engineering, Kansai University, Osaka, Japan (Toyooka, Y.) \|\| Kansai University, Osaka, Japan (Arakawa, M.)
Abstract	In this paper, a method for generating a logistics plan is proposed to simultaneously reduce the total inventory, logistics cost, and quantity of stock-out in a two-stage logistics system under uncertain demand. A mathematical model is constructed to resolve the problem of controlling the inventory and transportation of products between locations. There exists a trade-off relationship between the quantity of stock-out and the total inventory at distribution centers. The proposed method includes a strategy for reducing production and standard inventory and a model for minimizing discrepancies between the expected inventory and the resultant inventory among shops. A numerical experiment is performed on a simple model to evaluate the proposed method. The experimental results show that the proposed method is effective in simultaneously reducing the total inventory, logistics cost, and stock-out, through a comparison of methods involving various strategies for production and standard inventory and various models of product distribution from distribution centers to shops.
Starting Page	1
Ending Page	6
File Size	117296
Page Count	6
File Format	PDF
ISBN	9781424464852
e-ISBN	9781424464876
DOI	10.1109/ICSSSM.2010.5530178
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2010-06-28
Publisher Place	Japan
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Performance evaluation Production systems Stock-out Two-Stage Logistics System Transportation Safety Stock Production facilities Inventory Model Production planning Distributed control Cost function Mathematical model Product safety Logistics
Content Type	Text
Resource Type	Article

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