Distribution network dynamics with correlated demands
Ratanachote, P-N; Disney, S
Date: 17 June 2009
Conference paper
Publisher
EurOMA (European Operations Management Association)
Abstract
We compare centralised and decentralised distribution network designs for a two-level supply chain. The demand pattern faced by the retailers is modelled as a first order Vector Auto-Regressive process, which is used to represent the progression of and relationship in sets of time series. All participants, i.e. retailers and distribution ...
We compare centralised and decentralised distribution network designs for a two-level supply chain. The demand pattern faced by the retailers is modelled as a first order Vector Auto-Regressive process, which is used to represent the progression of and relationship in sets of time series. All participants, i.e. retailers and distribution centres, operate an Order-Up-To policy with the MMSE forecasting. Inventory and capacity costs are considered. The result shows that the demand correlation has a significant impact on decision about consolidation of the distribution system.
Management
Faculty of Environment, Science and Economy
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