Comparing continuous control policies by modeling and simulation of the procurement process

  • Authors

    • Abdessamad Douraid Mettu University
    • Hamid Ech-Cheikh Mettu University
    • Khalid El Had Mettu Univers
    • Mohamed Laradi
    2020-02-18
    https://doi.org/10.14419/ijet.v9i1.29949
  • Comparing Study, Supply Chain, Continuous Control, Discrete Event Simulation.
  • Inventory management is a challenging problem area in supply chain management and companies need to have inventories in warehouses in order to satisfy customer's needs. Meanwhile, these inventories have holding costs and this is a frozen fund that can be lost. Therefore, the task of inventory management is to find the right quantity of inventories that will fulfill the demand with the right price, avoiding overstocks. The aim of this paper is to carry out a comparing study of continuous inventory control policies in a stochastic environment of demand and lead time, in order to find out the impacts of the decision variables of each inventory control policy. For this purpose, the discrete event simulation approach has been chosen to generate various scenarios of inventory control policies of the procurement process by taking into account the production planning of the manufacturing company. The comparison of these configurations based on the essential key performance indicators of the supply chain, namely the cost and service level.

     

     

  • References

    1. [1] Martins, P.T.; Laugeni, F. P. Administração da produção., São Paulo, SP: Editora Saraiva, 2002.

      [2] Ann Arborr, Approximation Algorithms for the Stochastic Lot-sizing Problem with Order Lead Times, 2011.

      [3] Lee, HL & Billington, C, ‘The evolution of supply chain management models and practices at Hewlett Packard’, Interface, Vol. 25, no.5, pp.42–63, 1995. https://doi.org/10.1287/inte.25.5.42.

      [4] Finch, BJ, ‘Operations Now: Profitability, Processes, Performance’, 2nd edn, McGraw-Hill/ Irwin, United States, 2006.

      [5] Cousins,P.D., Lawson,B., Squire,B., 2006 . Supply chain management: theory and practice – the emergence of an academic discipline. International Journal of Operations & Production Management, 26 (7), pp.697 – 702. https://doi.org/10.1108/01443570610672194.

      [6] Sachan,A., Datta,S., 2005.Review of supply chain management and logistics research International Journal of Physical Distribution & Logistics Management, 35 (9), pp. 664 – 705. https://doi.org/10.1108/09600030510632032.

      [7] Storey,J., Emberson,C., Godsell,J., Harrison,A., 2006. Supply chain management: theory, practice and future challenges. International Journal of Operations & Production Management, 26 (7), pp. 754 – 774. https://doi.org/10.1108/01443570610672220.

      [8] Chopra, S.; et al. 2010. Supply Chain Management: Strategy, Planning, and Operation. New Jersey: Pearson.

      [9] F. D. Hedrick et al, “Inventory Management. Purchasing for Owners of Small Plants,†Buying for Retail Stores and Inventory Management, 2012.

      [10] C. Laeiddee, “Improvement of Re-Order Point for Drug Inventory Management at Ramathibodi Hospital,†Master Thesis, Mahidol University, 2010.

      [11] Setyaningsih S., Comparison Continuous and Periodic Review Policy Inventory Management System Formula and Enteral Food Supply in Public Hospital Bandung, International Journal of Innovation, Management and Technology, Vol. 4, No. 2, April 2013. https://doi.org/10.7763/IJIMT.2013.V4.401.

      [12] Caroline Thierry, The Role of Modeling and Simulation in Supply Chain Management, SCS M&S Magazine – Oct. 2010.

  • Downloads

  • How to Cite

    Douraid, A., Ech-Cheikh, H., El Had, K., & Laradi, M. (2020). Comparing continuous control policies by modeling and simulation of the procurement process. International Journal of Engineering & Technology, 9(1), 211-217. https://doi.org/10.14419/ijet.v9i1.29949