Simulation of a Two-End-Product Postponement System

  • T.C. Edwin ChengEmail author
  • Jian Li
  • C.L. Johnny Wan
  • Shouyang Wang
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 143)

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.


Order Quantity Customer Demand Average Inventory Total Average Cost Supply Chain System 
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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • T.C. Edwin Cheng
    • 1
    Email author
  • Jian Li
    • 2
  • C.L. Johnny Wan
    • 1
  • Shouyang Wang
    • 3
  1. 1.Department of Logistics & Maritime StudiesThe Hong Kong Polytechnic UniversityKowloonHong Kong SAR
  2. 2.School of Economics & Management Beijing University of Chemical Technology (BUCT)BeijingChina, People’s Republic
  3. 3.Chinese Academy of Sciences Academy of Mathematics & Systems ScienceBeijingChina, People’s Republic

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