Thelogisticsimpactofamixtureoforder-streamsinamanufacturer-retailersystem.docVIP

The logistics impact of a mixture of order-streams in a manufacturer-retailer system Abstract (Summary) We model a supply chain with two retail warehouses that place replenishment orders with a common manufacturing capacity. The two retailers differ in the variability of their order-streams. The order-stream from one retail warehouse is modeled as a Poisson process and from the other as a hyperexponential renewal process. Each retail warehouse uses a base-stock policy to place replenishment orders with the manufacturer. The manufacturer is modeled as a first-come-first-serve, single exponential server queue. We analyze the supply-side impact of this mixture of order-streams received by the manufacturer on both retailers. An exact analysis of this base-model generates closed-form expressions for distributions of the lead-time, outstanding orders, and expected inventory costs for each retailer, and leads to comparative results about the two retailers performance measures. The base-model is extended to accommodate finished goods at the manufacturer, more than two retailers, and bulk-arrivals. We use the model to suggest managerial insights about the impact of the presence of a high-variability retailer on other retailers who share capacity, the distorting impact of manufacturer finished goods inventory on retailer incentives, and the incentives for retailers to participate in variability-reduction programs in the grocery industry. [PUBLICATION ABSTRACT] ?? ? HYPERLINK /pqdlink?vinst=PRODfmt=4startpage=-1clientid=41941vname=PQDRQT=309did=384355331pmid=27845scaling=FULLts=1324724279vtype=PQDfileinfoindex=%2Fshare3%2Fpqimage%2Fpqirs103v%2F201112240557%2F56181%2F19131%2Fout.pdfrqt=309source=%24sourceTS=1324724369clientId=41941 \l indexing#indexing Jump to indexing (document details) Full Text ?(9382? words)Copyright Institute for Operations Research and the Management Sciences Jul 2003 [Headnote]We model a supply chain with two retail warehouses that place replenis