A Simulation Model of a Tandem Coordinated Supply Chain

Abstract:     
This paper presents a study of a coordinated production inventory-system. In the proposed model, any echelon considers its successors as part of its inventory system and generates the replenishment order on the basis of operational information of its partners. We show that the coordinated decision making allows elimination of information distortion along the chain. Furthermore, we show how the bottom-up transmission of inefficiencies, typical of traditional supply chains, is avoided.

Number of Pages in PDF File: 9

Keywords: Tandem production/inventory, collaboration, bullwhip effect, differential equations, statistical analysis, continuous simulation

JEL Classification: C0, C1

working papers series