Balanced and synchronized ordering in supply chains

Balanced and synchronized ordering in supply chains

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Article ID: iaor200972071
Country: United States
Volume: 40
Issue: 1
Start Page Number: 1
End Page Number: 11
Publication Date: Jan 2008
Journal: IIE Transactions
Authors: ,
Keywords: inventory
Abstract:

This paper considers a supply chain with one supplier and multiple retailers in which base stock policies are practiced. Specifically, we consider two replenishment strategies: synchronized ordering and balanced ordering. We present compelling results to explain how the supplier may benefit from synchronized ordering under fixed order intervals and examine numerically the cost impact to the retailers under the two strategies. We also compare the results of synchronized ordering with randomized ordering times.

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