Simulation-based optimization of control policy on multi-echelon inventory system for fresh agricultural products

Xu, Guangchen; Feng, Jihao; Chen, Fenglei; Wang, Heng; Wang, Zhenfeng

doi:10.25165/j.ijabe.20191202.2834

Cited by 24 publications

(14 citation statements)

References 28 publications

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“…Combined the simulation and optimization method for multi-echelon inventory system studies are found in (Xu, Feng, Chen , Wang, & Wang, 2019), (Kochel & Nielander, 2005), (Duan & Liao, 2014). The inventory analysis comprises of three phases.…”

Section: Methodsmentioning

confidence: 99%

Inventory simulation-optimization model for small business

Mulya

2020

ijbesd

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Simulation-optimization inventory models are widely used in inventory management studies, including for perishable good. A good inventory management is required to save inventory cost. We use simulation approach to take into consideration of uncertain demand and lead time to obtain a better result of optimal order quantity that minimizes inventory cost. Simulation result shows that simulation-optimization models generates lower total inventory cost. The simulation provides information of objectives in inventory management: (1) how much to order and (2) when to order with minimum cost which gives valuable information in business decision making.

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Section: Methodsmentioning

confidence: 99%

Inventory simulation-optimization model for small business

Mulya

2020

ijbesd

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“…The order strategy of supply chain within one month (T = 30 days) is planned. The data were obtained from reference [36] of data category combining marketing studies. Table 3.…”

Section: Decentralized Strategymentioning

confidence: 99%

Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains

Zhang

Chai

2021

Sustainability

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Fresh products are perishable and fragile, which easily leads to higher inventory costs and requires reasonable planning of inventory management. Therefore, it is very important for fresh product supply chain systems to have multi-echelon inventory control. However, in past studies, few control models of the multi-echelon inventory considered the deterioration rate of perishable products as the variable factor. In this paper, on the basis of considering the perishable characteristics of fresh products, combining the deterioration rate with the inventory control model, a multi-echelon inventory control model for fresh products is designed and optimized, and the optimal solution from the whole supply chain is obtained through the optimal fitness function by genetic algorithm. Finally, Flexsim is used to simulate the two inventory strategies before and after optimization. After simulation comparison and analysis, it is verified that the optimized inventory control strategy has lower costs. The research results can help supply chain managers of fresh products to make inventory management decisions and save costs, which is of practical significance.

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“…In addition, a few studies hold that the supply chain efficiency can be improved by tailoring supply chain for FAPs or adopting new production and marketing mode (He et al [7] and Jonkman et al [8]). Xu studied the inventory cost of a three-level FAPs inventory system [32].…”

Section: Different Contract Coordination Mechanismsmentioning

confidence: 99%

A supply chain-oriented perspective to prevent future COVID-19: Mathematical model and experience of guaranteeing quality and safety of fresh agricultural products

Yin

Bai

Zhang

2021

Preprint

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The COVID-19 outbreak has exposed deficiencies in the supply chain of FAPs, which have also increased their vulnerability. As the COVID-19 epidemic continues to develop, the effective supply of FAPs during the epidemic prevention and control period has become a key part of the response to the epidemic in metropolitan areas. Based on the game theory, this study constructed a three-level supply chain consisting of suppliers, TPL service providers and retailers to guarantee the supply of FAPs in metropolises in the context of COVID-19 epidemic. By Stackelberg principle game theory, the optimal epidemic prevention effort level, preservation effort level, wholesale price, retail price and optimal profit result in the supply chain dominated by supplier and retailer are respectively solved. In this study, in addition to the characteristics of FAPs such as easy loss and perishable, COVID-19 epidemic factors such as virus infection coefficient and epidemic prevention efforts were fully integrated into the model to ensure the effective supply of FAPs in metropolitan areas. The main research conclusions are as follows. (i) In the context of COVID-19, compared with the wholesale prices of FAPs, the level of preservation efforts and epidemic prevention efforts will have a greater impact on the retail prices of FAPs in metropolitan areas. (ii) When the supplier is in the dominant position, the sensitivity coefficient of the quality assurance effort level is positively correlated with the optimal profit of the supplier. Compared with other members, they have stronger control ability and decision-making ability, so that their profits are greater than those of other members. (ii) Compared with suppliers who are in the leading position of guarantee and supply, when FAPs retailers are in the leading position of guarantee and supply, TPL service providers have a higher level of epidemic prevention efforts and preservation efforts for FAPs. At the same time, the quality effort level, market demand and retail price are all greater under the retailer-led guarantee. (iv) The profit of FAPs retailers is affected by the sensitivity coefficient of preservation effort level, epidemic prevention effort level and dominant guarantee status.The COVID-19 outbreak has exposed deficiencies in the supply chain of FAPs, which have also increased their vulnerability. As the COVID-19 epidemic continues to develop, the effective supply of FAPs during the epidemic prevention and control period has become a key part of the response to the epidemic in metropolitan areas. Based on the game theory, this study constructed a three-level supply chain consisting of suppliers, TPL service providers and retailers to guarantee the supply of FAPs in metropolises in the context of COVID-19 epidemic. By Stackelberg principle game theory, the optimal epidemic prevention effort level, preservation effort level, wholesale price, retail price and optimal profit result in the supply chain dominated by supplier and retailer are respectively solved. In this study, in addition to the characteristics of FAPs such as easy loss and perishable, COVID-19 epidemic factors such as virus infection coefficient and epidemic prevention efforts were fully integrated into the model to ensure the effective supply of FAPs in metropolitan areas. The main research conclusions are as follows. (i) In the context of COVID-19, compared with the wholesale prices of FAPs, the level of preservation efforts and epidemic prevention efforts will have a greater impact on the retail prices of FAPs in metropolitan areas. (ii) When the supplier is in the dominant position, the sensitivity coefficient of the quality assurance effort level is positively correlated with the optimal profit of the supplier. Compared with other members, they have stronger control ability and decision-making ability, so that their profits are greater than those of other members. (ii) Compared with suppliers who are in the leading position of guarantee and supply, when FAPs retailers are in the leading position of guarantee and supply, TPL service providers have a higher level of epidemic prevention efforts and preservation efforts for FAPs. At the same time, the quality effort level, market demand and retail price are all greater under the retailer-led guarantee. (iv) The profit of FAPs retailers is affected by the sensitivity coefficient of preservation effort level, epidemic prevention effort level and dominant guarantee status.

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Simulation-based optimization of control policy on multi-echelon inventory system for fresh agricultural products

Cited by 24 publications

References 28 publications

Inventory simulation-optimization model for small business

Inventory simulation-optimization model for small business

Research on Multi-Echelon Inventory Optimization for Fresh Products in Supply Chains

A supply chain-oriented perspective to prevent future COVID-19: Mathematical model and experience of guaranteeing quality and safety of fresh agricultural products

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