arXiv Open Access 2022

Optimal Ordering Policies for Multi-Echelon Supply Networks

Jose I. Caiza Ian Walter Jitesh H. Panchal Junjie Qin Philip E. Pare

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Abstrak

In this paper, we formulate an optimal ordering policy as a stochastic control problem where each firm decides the amount of input goods to order from their upstream suppliers based on the current inventory level of its output good. For this purpose, we provide a closed-form solution for the optimal request of the raw materials for given a fixed production policy. We implement the proposed policy on a 15-firm acyclic network based on a real product supply chain. We first simulate ideal demand situations, and then we implement demand-side shocks (i.e., demand levels outside of those considered in the policy formulation) and supply-side shocks (i.e., halts in production for some suppliers) to evaluate the robustness of the proposed policies.

Topik & Kata Kunci

math.OC eess.SY

Penulis (5)

Jose I. Caiza

Ian Walter

Jitesh H. Panchal

Junjie Qin

Philip E. Pare

Format Sitasi

APA MLA BibTeX

Caiza, J.I., Walter, I., Panchal, J.H., Qin, J., Pare, P.E. (2022). Optimal Ordering Policies for Multi-Echelon Supply Networks. https://arxiv.org/abs/2209.04789

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Informasi Jurnal

Tahun Terbit: 2022
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓