Simulation of a Two-End-Product Postponement System
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In the last chapter, we have shown that the cost benefits of a postponement system are limited when it is implemented to a single end-product supply chain system whose customer demands are discrete and uniformly distributed. To a great extent, a lot size-reorder point system outperforms a postponement system when it is operated in its optimal or near optimal total average cost at steady state based on our results. However, it is argued that a postponement system may outperform a lot size-reorder point system if the supply chain system offers more than one end-product. This view is coherent with our findings in Chapters 2 and 3. Besides, the analysis would be more valuable if both Poisson and normal distributions are considered. In fact, it is more equitable to compare the two systems by an experimental approach instead of their long-run steady states because the steady state may be reached only after infinite periods or a very long time. In order to maintain completeness of our study, a more dynamic system is developed by simulation technique in this chapter.
KeywordsOrder Quantity Customer Demand Average Inventory Total Average Cost Supply Chain System
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