Modelling information sharing in a VMI environment with inventory hub

Ivor Lanning, Cathal Heavey

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Discrete-Event Simulation is used to analyse a supply network under varying input conditions. The network is a 3-tier supply chain, with an OEM operating in a direct-to-customer environment supplied by a local inventory hub which, in turn is supplied by a contract manufacturer employing a Vendor Managed Inventory (VMI) system. Varying inputs of demand, lead-time and timeliness of information sharing are investigated with inventory levels, and expedited order requirements as the performance metrics. Results point to the fact that in a Make-to-Order environment, decreasing the time between demand forecast sharing between an OEM and a Contract Manufacturer can reduce the number of expedited orders in the system.

Original languageEnglish
Title of host publication12th IFAC Symposium on Information Control Problems in Manufacturing, INCOM 2006, and Associated Industrial Meetings
Subtitle of host publicationEMM'2006, BPM'2006, JT'2006
PublisherIFAC Secretariat
EditionPART 1
ISBN (Print)9783902661043
DOIs
Publication statusPublished - 2006

Publication series

NameIFAC Proceedings Volumes (IFAC-PapersOnline)
NumberPART 1
Volume12
ISSN (Print)1474-6670

Keywords

  • Co-operation
  • Discrete-time systems
  • Information flows
  • Inventory control
  • JIT manufacturing
  • Simulation
  • Stochastic systems

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