TY - GEN
T1 - A simulation approach for multi-stage supply chain optimization to analyze real world transportation effects
AU - Peirleitner, Andreas Josef
AU - Altendorfer, Klaus
AU - Felberbauer, Thomas
PY - 2016/7/2
Y1 - 2016/7/2
N2 - The cost effective management of a supply chain under stochastic influences, e.g. in demand or the replenishment lead time, is a critical issue. In this paper a multi-stage and multi-product supply chain is investigated where each member uses the (s,Q)-policy for inventory management. A bi-objective optimization problem to minimize overall supply chain costs while maximizing service level for retailers is studied. Optimal parameter levels for reorder points and lot sizes are evaluated. In a first step a streamlined analytical solution approach is tested to identify optimal parameter settings. For real applications, this approach neglects the dynamics and interdependencies of the supply chain members. Therefore a simulation-based approach, combining an evolutionary algorithm with simulation, is used for the optimization. The simulation-based approach further enables the modelling of additional real world transportation constraints. The numerical simulation study highlights the potential of simulation-based optimization compared to analytical models for multi-stage multi-product supply chains.
AB - The cost effective management of a supply chain under stochastic influences, e.g. in demand or the replenishment lead time, is a critical issue. In this paper a multi-stage and multi-product supply chain is investigated where each member uses the (s,Q)-policy for inventory management. A bi-objective optimization problem to minimize overall supply chain costs while maximizing service level for retailers is studied. Optimal parameter levels for reorder points and lot sizes are evaluated. In a first step a streamlined analytical solution approach is tested to identify optimal parameter settings. For real applications, this approach neglects the dynamics and interdependencies of the supply chain members. Therefore a simulation-based approach, combining an evolutionary algorithm with simulation, is used for the optimization. The simulation-based approach further enables the modelling of additional real world transportation constraints. The numerical simulation study highlights the potential of simulation-based optimization compared to analytical models for multi-stage multi-product supply chains.
UR - http://www.scopus.com/inward/record.url?scp=85014199171&partnerID=8YFLogxK
U2 - 10.1109/WSC.2016.7822268
DO - 10.1109/WSC.2016.7822268
M3 - Conference contribution
T3 - Proceedings - Winter Simulation Conference
SP - 2272
EP - 2283
BT - 2016 Winter Simulation Conference
A2 - Roeder, Theresa M.
A2 - Frazier, Peter I.
A2 - Szechtman, Robert
A2 - Zhou, Enlu
T2 - 2016 Winter Simulation Conference
Y2 - 11 December 2016 through 14 December 2016
ER -