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Research on Inventory Simulation of Pulse Supply Chain Based on Controllable Lead Time

Author

Listed:
  • Boxi Zuo

    (Management School, Jinan University (JNU), Guangzhou, China.)

  • Chengqi Peng

    (Management School, Jinan University (JNU), Guangzhou, China.)

  • Wenying Liu

    (Management School, Jinan University (JNU), Guangzhou, China.)

Abstract

In the e-commerce environment, how supply chain enterprises respond to surge demands has become an urgent issue to address. This article takes into consideration the overall interests of the supply chain system, aiming to maximize the supply chain profit. By applying system dynamics theory, an in-depth analysis is conducted on a two-tier supply chain consisting of a single manufacturer and a single retailer with controllable lead times. A system dynamics model is constructed using Vensim simulation software as the modeling platform, and simulation analyses are performed for both single and multiple surge demands. The findings reveal that in both single and multiple surge demand scenarios, implementing a controllable retailer lead time strategy leads to higher profits compared to normal lead time and random lead time strategies. Moreover, as the lead time is compressed, the profit exhibits an increasing-to-decreasing trend. Additionally, when both the manufacturer and retailer lead times are controllable, the profit of the entire supply chain surpasses that of the normal lead time and random lead time strategies.

Suggested Citation

  • Boxi Zuo & Chengqi Peng & Wenying Liu, 2023. "Research on Inventory Simulation of Pulse Supply Chain Based on Controllable Lead Time," International Journal of Science and Business, IJSAB International, vol. 27(1), pages 216-225.
    • Handle: RePEc:aif:journl:v:27:y:2023:i:1:p:216-225
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    References listed on IDEAS

    as
    1. Liu, Hengyu & Zhang, Juliang & Cheng, T.C.E. & Ru, Yihong, 2020. "Optimal production-inventory policy for the multi-period fixed proportions co-production system," European Journal of Operational Research, Elsevier, vol. 280(2), pages 469-478.
    2. Oussama Ben-Ammar & Belgacem Bettayeb & Alexandre Dolgui, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," Post-Print hal-02415332, HAL.
    3. Ben-Ammar, Oussama & Bettayeb, Belgacem & Dolgui, Alexandre, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," International Journal of Production Economics, Elsevier, vol. 218(C), pages 106-117.
    4. Papachristos, S. & Konstantaras, I., 2006. "Economic ordering quantity models for items with imperfect quality," International Journal of Production Economics, Elsevier, vol. 100(1), pages 148-154, March.
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