Study on the choice of safety factor of stochastic lead time inventory model of distribution system

Author

Chen, Jie ; Su, Lingmeng ; Luo, Jiangqiang

Author_Institution

Econ. & Manage. Sch., Nanjing Univ. of Sci. & Technol., Nanjing

Volume

2

fYear

2008

fDate

12-15 Oct. 2008

Firstpage

2973

Lastpage

2978

Abstract

An inventory model of secondary distribution system constituted by one distribution center and N retailers is established. Both the distribution center and the retailers adopt (Q,R) strategy, the lead-time of each retailers is subject to the stochastic fluctuation of the distribution centeriquests shortage quantity. The security factor of the distribution center and each distributor is analyzed, the decision of the optimal security factor under the condition of non-cooperation is discussed and the conclusion of the model is proved by numerical examples.

Keywords

distribution strategy; inventory management; lead time reduction; safety; security; stochastic processes; distribution center; optimal security factor; safety factor; secondary distribution system; stochastic fluctuation; stochastic lead time inventory model; distribution center; model optimization; security factor; stochastic lead-time;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Operations and Logistics, and Informatics, 2008. IEEE/SOLI 2008. IEEE International Conference on

Conference_Location

Beijing

Print_ISBN

978-1-4244-2012-4

Electronic_ISBN

978-1-4244-2013-1

Type

conf

DOI

10.1109/SOLI.2008.4683044

Filename

4683044