We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
2/4 steps

How Many Pages?

3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Get Offer

A Study on Inventory System

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

A study on inventory replenishment policies in a two-echelon supply chain system. References and further reading may be available for this article. To view references and further reading you must purchase this article. H. T. Leea, [pic], [pic]and J. C. Wub aDepartment of Business Administration, National Taipei University, 151, University Rd. , San Shia, Taipei, 237 Taiwan, ROC bInstitute of Business and Management, Lunghwa University of Science and Technology, 300 Wan-shou Road, Section 1, Kueishan, Taoyuan, Taiwan, ROC Available online 7 September 2006.

Abstract Inventory control plays an important role in supply chain management.

Don't use plagiarized sources. Get Your Custom Essay on
A Study on Inventory System
Just from $13,9/Page
Get custom paper

Properly controlled inventory can satisfy customers’ demands, smooth the production plans, and reduce the operation costs; yet failing to budget the inventory expenses may lead to serious consequences. The bullwhip effect, observed in many supply chain management cases, causes excessive inventory due to information distortion, i. e. the order amount is exaggerated while a minor demand variation occurs, and the information amplified dramatically as the supply chain moves to the upstream.

In this paper, one of the main causes of bullwhip effect, order batching, is considered.

A simplified two-echelon supply chain system, with one supplier and one retailer that can choose different replenishment policies, is used as a demonstration. Two types of inventory replenishment methods are considered: the traditional methods (the event-triggered and the time-triggered ordering policies), and the statistical process control (SPC) based replenishment method.

The results show that the latter outperforms the traditional method in the categories of inventory variation, and in the number of backlog when the fill-rate of the prior model is set to be 99%. This research provides a different approach to inventory cost-down other than the common methods like: information sharing, order batch cutting, and lead time reduction. By choosing a suitable replenishment policy, the number of backorder and the cost of inventory can be reduced.

Cite this A Study on Inventory System

A Study on Inventory System. (2018, Jun 03). Retrieved from https://graduateway.com/a-study-on-inventory-system/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page