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: | Cheung Ki Ling, Zhang Sheng Hao |
Keywords: | inventory |
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.