Modelling strategies for vendor-managed inventory

Conference paper

White, A.S. and Censlive, M. 2005. Modelling strategies for vendor-managed inventory. Sterman, J., Repenning, N., Langer, R., Rowe, J. and Yanni, J. (ed.) The 23rd International Conference of the System Dynamics Society.. Boston, USA 17 - 21 Jul 2005 The System Dynamics Society.
TypeConference paper
TitleModelling strategies for vendor-managed inventory
AuthorsWhite, A.S. and Censlive, M.
Abstract

This paper describes transform approaches to control Vendor-Managed Inventory (VMI). The effect of different modelling techniques and their significance is examined. Modelling was achieved with the Simulink package using the equations developed by Disney and Towill for a VMI system model. Analysis of several types of delay representation were compared to illustrate how the results depend on their formulation. The effect of using a discrete model is to deepen the stock-out and increase the required order rate. Analysis of the stability of the different models are discussed and evaluated. It is shown that the continuous model with an exponential delay is always stable and with a fixed delay can be made stable. The requirement for the system is also computed for a discrete model with exponential delay. Reduced inventory stock-out and a smaller WIP peak are achieved with different order smoothing function. This has special significance for e-manufacture.

ConferenceThe 23rd International Conference of the System Dynamics Society.
EditorsSterman, J., Repenning, N., Langer, R., Rowe, J. and Yanni, J.
ISBN
Hardcover0974532924
PublisherThe System Dynamics Society
Publication dates
Print2005
Publication process dates
Deposited08 Mar 2010
Output statusPublished
Additional information

Paper presented in 23rd International Conference of the System Dynamics Society, July 17 – 21, 2005, Boston, USA.

Web address (URL)http://www.systemdynamics.org/conferences/2005/proceed/proceed.pdf
LanguageEnglish
Book titleProceedings of the 23rd international conference of thesystem dynamics society.
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