Does uncertain demand affect service quality?

Chen, Chiang-Ming; Chiu, Hsien-Hung; Chi, Yan-Ping; Wu, Sou-Chein

doi:10.1016/j.ijhm.2015.01.013

Cited by 2 publications

(2 citation statements)

References 10 publications

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“…In the majority of real-life cases, the demand is not known a priori and may fluctuate with time in an uncertain way, which poses a significant challenge for balancing the costs and revenues. Besides logistics, this uncertainty is encountered in other contexts as well, i.e., trade [50], tourism [51], or energy distribution [52]. In order to address its negative implications, various resource management strategies are proposed and tuned to the specifics of a particular problem.…”

Section: Objectives and Paper Contributionmentioning

confidence: 99%

Networked Base‐Stock Inventory Control in Complex Distribution Systems

Ignaciuk

Wieczorek

2019

Mathematical Problems in Engineering

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This paper addresses the resource distribution problem in logistic networks with a complex, multi-echelon interconnection structure. The considered class of systems encompasses two types of nodes: controlled nodes subject to inventory management decisions and sources providing goods to the system to sustain the sales. The stock gathered at the controlled nodes is used to satisfy an exogenous, uncertain demand that may be placed at any controlled node. The stock is replenished from the sources and other controlled nodes, and the flow of goods proceeds with positive lead-time delay. The network topology does not assume any structural simplifications typically considered in inventory control problems, i.e., the nodes can form a link with any other node which leads to a mesh, multi-echelon structure. The contribution of this paper is twofold: First, the classical order-up-to policy is analyzed formally with respect to such nontrivial connectivity architectures, and conditions for full demand satisfaction under any bounded demand pattern are established. Next, a networked extension of the classical policy is proposed. The introduced networked policy is shown to generate smaller holding costs while maintaining the same service level as the classical policy. The formal study is supported by numerical tests involving genetic algorithms and simulation-based optimization.

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Section: Objectives and Paper Contributionmentioning

confidence: 99%

Networked Base‐Stock Inventory Control in Complex Distribution Systems

Ignaciuk

Wieczorek

2019

Mathematical Problems in Engineering

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“…We considered the environmental factors that are related to human economic activity and society because these factors are closely related to the development of the HASC alliance and are thus deemed internal factors of the HASC cooperation system. Based on previous studies [114][115][116][117][118][119][120][121][122][123], we selected the following factors: public policy (POL), economic situation (ECO), market fluctuations, including market demand fluctuation (MDF) and market price fluctuation (MPF), regional traffic accessibility (RTA), and consumer requirement, including timeliness requirement (TR) and freshness requirement (FR).…”

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confidence: 99%

Home-Delivery-Oriented Agri-Food Supply Chain Alliance: Framework, Management Strategies, and Cooperation Stability Control

Han

Pervez

et al. 2020

Sustainability

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The high cost of operation and severe competition in the agri-food e-commerce market make it hard for the small and medium agri-food enterprises (A-SMEs) to operate cost-efficiently and in a sustainable manner. This paper seeks to organize A-SMEs to develop a cooperative organization via collaborative strategies and alliance structures, named as the home-delivery-oriented agri-food supply chain (HASC) alliance, to form a substantive relationship to gain a stable foothold in the emerging e-commerce market. A theoretical framework of the HASC alliance is built with its organizational structure and schematics of the process of implementation strategies that cover the aspects of last-mile chain extension, food transportation, and production/distribution control. Furthermore, a three-step analytical method is proposed to analyze the performance of the alliance with the aim to provide appropriate strategies to hedge against the potential risks of cooperation instability. A hypothetical case is conducted, and the results show that: (1) the performance of the hypothetical HASC alliance with time shows significant variation in the beginning, but it gains stability with the application of stability control strategies; (2) the cooperation stability of HASC alliance is very sensitive to the performance of the strategies that control the customer and environment variations; (3) the factors of trust and market fluctuation have higher effects on membership and environmental stability, respectively; (4) the minimum and maximum cost ranges of control strategies at which the alliance can maintain its stability and performance are 5% and 29%, respectively, of the total operation cost.

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Does uncertain demand affect service quality?

Cited by 2 publications

References 10 publications

Networked Base‐Stock Inventory Control in Complex Distribution Systems

Networked Base‐Stock Inventory Control in Complex Distribution Systems

Home-Delivery-Oriented Agri-Food Supply Chain Alliance: Framework, Management Strategies, and Cooperation Stability Control

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