Simulation of Three-Tier Supply Chains with Product Shelf-Life Effects

Author: White Anthony S.   Censlive Michael  

Publisher: BEM - Bordeaux Management School

E-ISSN: 1624-6039|16|1|26-44

ISSN: 1624-6039

Source: Supply Chain Forum: an International Journal, Vol.16, Iss.1, 2015-03, pp. : 26-44

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Abstract

Simulation models are used to examine the effects of shelf life on the performance of three-tier automatic pipeline, variable-inventory, and order-based production control system (APVIOBPCS) supply chains with different information delays between tiers with a fixed or variable inventory constructed using SIMULINK, which provides a response to a sudden demand sales rate and a finite shelf life. This incorporates the effects of product shelf life for each tier. It is assumed that for a finite shelf life, all parties practise a first-in, first-out operation. We show a substantial reduction in the number of discards, reducing carbon footprint and wasted resources. Fixed-inventory targets produce more discards than variable inventory, and vendor-managed inventory or electronic data transmission with discard feedback produce substantial reductions in discard.