Simulation of allocation policies for a serial inventory system under advance demand information

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Abstract

In this paper, we simulate allocation policies for a two-stage inventory system that receives perfect advance demand information (ADI) from customers belonging to different demand classes. Demands for each customer class are generated by independent Poisson processes while the processing times are deterministic. All customers in the same class have the same demand lead time (the difference between the due date and the requested date) and back-ordering costs. Each stage in the inventory system follows order-base-stock-policies where the replenishment order is issued upon arrival of a customer order. The problem requires a fast and reliable method that determines the system performance under different policies and ADI. Thus, we employ discrete-event simulation to obtain output parameters such as inventory costs, fill rates, waiting time, and order allocation times. A numerical analysis is conducted to identify a reasonable policy to use in this type of system.
Original languageEnglish
Title of host publicationWSC 2019- 2019 Winter Simulation Conference
EditorsN. Mustafee, K-H.G. Bae, S. Lazarova-Molnar, M. Rabe, C. Szabo, P. Haas, Y-J. Son
Number of pages12
Publication statusPublished - 2019
Event2019 Winter Simulation Conference (WSC 2019) - National Harbor, United States
Duration: 8 Dec 201911 Dec 2019
http://meetings2.informs.org/wordpress/wsc2019/

Conference

Conference2019 Winter Simulation Conference (WSC 2019)
Abbreviated titleWSC2019
CountryUnited States
CityNational Harbor
Period8/12/1911/12/19
Internet address

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Simulation
Serials
Inventory systems
Advance demand information
Discrete event simulation
Lead time
Due dates
Numerical analysis
Time allocation
Costs
Waiting time
Poisson process
Base-stock policy
Replenishment
Inventory cost

Cite this

Nataraja, B. M., & Atan, Z. (2019). Simulation of allocation policies for a serial inventory system under advance demand information. In N. Mustafee, K-HG. Bae, S. Lazarova-Molnar, M. Rabe, C. Szabo, P. Haas, & Y-J. Son (Eds.), WSC 2019- 2019 Winter Simulation Conference
Nataraja, Bhoomica M. ; Atan, Zümbül. / Simulation of allocation policies for a serial inventory system under advance demand information. WSC 2019- 2019 Winter Simulation Conference. editor / N. Mustafee ; K-H.G. Bae ; S. Lazarova-Molnar ; M. Rabe ; C. Szabo ; P. Haas ; Y-J. Son. 2019.
@inproceedings{c018a9f668c7412d9571f558b906d257,
title = "Simulation of allocation policies for a serial inventory system under advance demand information",
abstract = "In this paper, we simulate allocation policies for a two-stage inventory system that receives perfect advance demand information (ADI) from customers belonging to different demand classes. Demands for each customer class are generated by independent Poisson processes while the processing times are deterministic. All customers in the same class have the same demand lead time (the difference between the due date and the requested date) and back-ordering costs. Each stage in the inventory system follows order-base-stock-policies where the replenishment order is issued upon arrival of a customer order. The problem requires a fast and reliable method that determines the system performance under different policies and ADI. Thus, we employ discrete-event simulation to obtain output parameters such as inventory costs, fill rates, waiting time, and order allocation times. A numerical analysis is conducted to identify a reasonable policy to use in this type of system.",
author = "Nataraja, {Bhoomica M.} and Z{\"u}mb{\"u}l Atan",
year = "2019",
language = "English",
editor = "N. Mustafee and K-H.G. Bae and S. Lazarova-Molnar and M. Rabe and C. Szabo and P. Haas and Y-J. Son",
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Nataraja, BM & Atan, Z 2019, Simulation of allocation policies for a serial inventory system under advance demand information. in N Mustafee, K-HG Bae, S Lazarova-Molnar, M Rabe, C Szabo, P Haas & Y-J Son (eds), WSC 2019- 2019 Winter Simulation Conference. 2019 Winter Simulation Conference (WSC 2019), National Harbor, United States, 8/12/19.

Simulation of allocation policies for a serial inventory system under advance demand information. / Nataraja, Bhoomica M.; Atan, Zümbül.

WSC 2019- 2019 Winter Simulation Conference. ed. / N. Mustafee; K-H.G. Bae; S. Lazarova-Molnar; M. Rabe; C. Szabo; P. Haas; Y-J. Son. 2019.

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

TY - GEN

T1 - Simulation of allocation policies for a serial inventory system under advance demand information

AU - Nataraja, Bhoomica M.

AU - Atan, Zümbül

PY - 2019

Y1 - 2019

N2 - In this paper, we simulate allocation policies for a two-stage inventory system that receives perfect advance demand information (ADI) from customers belonging to different demand classes. Demands for each customer class are generated by independent Poisson processes while the processing times are deterministic. All customers in the same class have the same demand lead time (the difference between the due date and the requested date) and back-ordering costs. Each stage in the inventory system follows order-base-stock-policies where the replenishment order is issued upon arrival of a customer order. The problem requires a fast and reliable method that determines the system performance under different policies and ADI. Thus, we employ discrete-event simulation to obtain output parameters such as inventory costs, fill rates, waiting time, and order allocation times. A numerical analysis is conducted to identify a reasonable policy to use in this type of system.

AB - In this paper, we simulate allocation policies for a two-stage inventory system that receives perfect advance demand information (ADI) from customers belonging to different demand classes. Demands for each customer class are generated by independent Poisson processes while the processing times are deterministic. All customers in the same class have the same demand lead time (the difference between the due date and the requested date) and back-ordering costs. Each stage in the inventory system follows order-base-stock-policies where the replenishment order is issued upon arrival of a customer order. The problem requires a fast and reliable method that determines the system performance under different policies and ADI. Thus, we employ discrete-event simulation to obtain output parameters such as inventory costs, fill rates, waiting time, and order allocation times. A numerical analysis is conducted to identify a reasonable policy to use in this type of system.

M3 - Conference contribution

BT - WSC 2019- 2019 Winter Simulation Conference

A2 - Mustafee, N.

A2 - Bae, K-H.G.

A2 - Lazarova-Molnar, S.

A2 - Rabe, M.

A2 - Szabo, C.

A2 - Haas, P.

A2 - Son, Y-J.

ER -

Nataraja BM, Atan Z. Simulation of allocation policies for a serial inventory system under advance demand information. In Mustafee N, Bae K-HG, Lazarova-Molnar S, Rabe M, Szabo C, Haas P, Son Y-J, editors, WSC 2019- 2019 Winter Simulation Conference. 2019