Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains
Abstract
:1. Introduction
2. Methodology
2.1. System Description
2.2. Inventory Cost
2.3. Model Assumptions
- The demand of each node is stable and continuous, that is, the demand of each node to its upper echelon node is .
- It is hypothesized that the fresh products are processed by certain approaches so that the deterioration rate of the fresh products at each node is constant .
- The supply of goods from upper level to lower level is delayed by a unit of time , and the goods are replenished instantly upon arrival.
- Product shortage is not allowed for retailers.
2.4. Notation
2.5. Model Formulation
2.6. Inventory Control Strategy
3. Illustrative Case Study
3.1. Case Description
3.2. Decentralized Strategy
3.3. Centralized Strategy
3.4. Results Analysis
4. Simulation Model Verification
4.1. Simulation Model Establish
4.2. Simulation Results Analysis
5. Conclusions and Further Research
5.1. Conclusions
5.2. Limitations and Future Research
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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Symbol | Description |
---|---|
CS | Inventory maintaining inventory cost refers to the expenses necessary to maintain inventory, that is, the costs incurred because inventory exists to ensure the continuity of production and supply. |
CO | Order cost refers to the cost of the purchase order issued by the upstream supplier. |
CF | Transportation cost refers to the cost of transporting items from the upstream inventory to the downstream inventory, and is proportional to the number of transportation and the single transportation volume. It is mainly determined by the price of a single transportation unit. |
CP | Purchase cost refers to the cost of purchasing the item itself. |
CL | Shortage cost refers to the loss caused by insufficient inventory. The cost can be ignored if the shortage is not allowed. |
Symbol | Description | Symbol | Description |
---|---|---|---|
Deterioration rate of ith level, jth node | Stock cycle of ith level, jth node | ||
Inventory of ith level, jth node at time t | Storage cost per unit time of ith level, jth node | ||
Demand amount of ith level, jth node | Order cost per unit time of ith level, jth node | ||
Order quantity of ith level, jth node | Transportation cost per unit time of ith level, jth node | ||
Inventory quantity of ith level, jth node when the order is placed | Purchase cost per unit time of ith level, jth node | ||
Storage cost per unit of product per unit of time of ith level, jth node | Total cost of each node of the supply chain in time T | ||
One-time order cost of ith level, jth node | Number of orders in cycle T of ith level, jth node | ||
Transportation cost per unit of product per unit of time of ith level, jth node | Supply chain management cycle | ||
Unit purchasing price of unit product of ith level, jth node | Order lead time of ith level, jth node |
Node | |||||||
---|---|---|---|---|---|---|---|
R1 | 0.04 | 10 | 0.1 | 1 | 1 | 200 | 0.1 |
R2 | 0.04 | 10 | 0.1 | 1 | 1 | 125 | 0.1 |
R3 | 0.04 | 10 | 0.1 | 1 | 1 | 100 | 0.1 |
SD1 | 0.03 | 20 | 0.09 | 0.8 | 1.5 | — | 0.1 |
SD2 | 0.03 | 20 | 0.09 | 0.8 | 1.5 | — | 0.1 |
PD1 | 0.02 | 30 | 0.08 | 0.6 | 1.8 | — | 0.1 |
Node | ||||
---|---|---|---|---|
R1 | 289 | 209 | 1.35 | 6834.2 |
R2 | 230 | 131 | 1.68 | 4270.3 |
R3 | 206 | 105 | 1.87 | 3409.8 |
SD1 | 616 | 566 | 1.62 | 10,566 |
SD2 | 352 | 178 | 2.78 | 3849.5 |
PD1 | 1077 | 1000 | 1.93 | 11,748 |
Node | ||||
---|---|---|---|---|
R1 | 238 | 210 | 1.12 | 7042.0 |
R2 | 189 | 131 | 1.40 | 4476.5 |
R3 | 166 | 105 | 1.53 | 3616.7 |
SD1 | 561 | 559 | 1.50 | 10,053.0 |
SD2 | 307 | 175 | 2.50 | 3344.0 |
PD1 | 1066 | 978 | 1.94 | 11,212.0 |
Node | Inventory (unit: kg) | Cost (unit: yuan) | ||
---|---|---|---|---|
Before Optimization | After Optimization | Before Optimization | After Optimization | |
R1 | 131.5 | 109.5 | 6974.7 | 7010.2 |
R2 | 112.9 | 92.3 | 4446.5 | 4438.8 |
R3 | 100.5 | 80.8 | 3579.6 | 3602.4 |
SD1 | 297.0 | 280.0 | 9949.8 | 9991.3 |
SD2 | 217.1 | 197.7 | 3352.2 | 3341.9 |
PD1 | 820.0 | 698 | 11,360.4 | 11,274.0 |
Total cost | 39,663.2 | 39,658.5 |
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Zhang, Y.; Chai, Y.; Ma, L. Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains. Sustainability 2021, 13, 6309. https://doi.org/10.3390/su13116309
Zhang Y, Chai Y, Ma L. Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains. Sustainability. 2021; 13(11):6309. https://doi.org/10.3390/su13116309
Chicago/Turabian StyleZhang, Yingying, Yi Chai, and Le Ma. 2021. "Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains" Sustainability 13, no. 11: 6309. https://doi.org/10.3390/su13116309
APA StyleZhang, Y., Chai, Y., & Ma, L. (2021). Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains. Sustainability, 13(11), 6309. https://doi.org/10.3390/su13116309