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Simulation-Based Optimization of a Two-Echelon Continuous Review Inventory Model with Lot Size-Dependent Lead Time
- Source :
- Processes, Volume 8, Issue 9, Processes, Vol 8, Iss 1014, p 1014 (2020)
- Publication Year :
- 2020
- Publisher :
- Multidisciplinary Digital Publishing Institute, 2020.
-
Abstract
- This study analyzes a stochastic continuous review inventory system (Q,r) using a simulation-based optimization model. The lead time depends on lot size, unit production time, setup time, and a shop floor factor that represents moving, waiting, and lot size inspection times. A simulation-based model is proposed for optimizing order quantity (Q) and reorder point (r) that minimize the total inventory costs (holding, backlogging, and ordering costs) in a two-echelon supply chain, which consists of two identical retailers, a distributor, and a supplier. The simulation model is created with Arena software and validated using an analytical model. The model is interfaced with the OptQuest optimization tool, which is embedded in the Arena software, to search for the least cost lot sizes and reorder points. The proposed model is designed for general demand distributions that are too complex to be solved analytically. Hence, for the first time, the present study considers the stochastic inventory continuous review policy (Q,r) in a two-echelon supply chain system with lot size-dependent lead time L(Q). An experimental study is conducted, and results are provided to assess the developed model. Results show that the optimized Q and r for different distributions of daily demand are not the same even if the associated total inventory costs are close to each other.
- Subjects :
- 0209 industrial biotechnology
Mathematical optimization
Computer science
Supply chain
0211 other engineering and technologies
Distributor
Bioengineering
Arena
02 engineering and technology
lcsh:Chemical technology
lcsh:Chemistry
020901 industrial engineering & automation
Software
Simulation-based optimization
stochastic inventory problem
Chemical Engineering (miscellaneous)
Production (economics)
lcsh:TP1-1185
021103 operations research
business.industry
Process Chemistry and Technology
simulation-based optimization
Reorder point
dependent lead time
lcsh:QD1-999
Order (business)
business
Lead time
Subjects
Details
- Language :
- English
- ISSN :
- 22279717
- Database :
- OpenAIRE
- Journal :
- Processes
- Accession number :
- edsair.doi.dedup.....368755da26ff7c2cdb64ef2b54e05006
- Full Text :
- https://doi.org/10.3390/pr8091014