A simulation model of a coordinated decentralized linear supply chain

Jalal Ashayeri, S. Cannella, M. Lopez Campos, P.A. Miranda, Roberto Dominguez

Research output: Contribution to journalArticleScientificpeer-review

20 Citations (Scopus)

Abstract

This paper presents a simulation-based study of a coordinated, decentralized linear supply chain (SC) system. In the proposed model, any supply tier considers its successors as part of its inventory system and generates replenishment orders on the basis of its partners’ operational information. We show that the proposed coordinated decision-making process creates a reduction in information distortion along an SC compared with a traditional, noncoordinated strategy. A novel result is that we show how a coordinated SC can avoid the detrimental consequences of demand amplification in terms of penalty costs due to the stockout phenomenon in upstream stages.
Original languageEnglish
Pages (from-to)735-756
Number of pages22
JournalInternational Transactions in Operational Research
Volume22
Issue number4
DOIs
Publication statusPublished - 2015

Keywords

  • decentralized supply chain
  • coordinated order policies
  • information sharing
  • system service level
  • system dynamics

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    Ashayeri, J., Cannella, S., Lopez Campos, M., Miranda, P. A., & Dominguez, R. (2015). A simulation model of a coordinated decentralized linear supply chain. International Transactions in Operational Research, 22(4), 735-756. https://doi.org/10.1111/itor.12175