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Simulating Demand Uncertainty and Inventory Control Variability of Multi-Echelon Distribution Supply Chain

Author

Listed:
  • Hamid Ech-Cheikh

    (Laboratoire LISER, ENSEM, Université Hassan II, Casablanca, Morocco)

  • Saâd Lissane Elhaq

    (Laboratoire LISER, ENSEM, Université Hassan II, Casablanca, Morocco)

  • Ahmed Rachid

    (Laboratoire LTI, UFR des Sciences, Université de Picardie Jules Verne, Amiens, France)

  • Abdessamad Douraid

    (Laboratoire LISER, ENSEM, Université Hassan II, Casablanca, Morocco)

Abstract

Development of simulation models allows performance analysis of multi-echelon inventory networks, and this part of supply chain is not well-established research area. Moreover, by encapsulating all major characteristics of multi-echelon system, the simulation modeling does not allow only its study, but also it provides the means to achieve the desired system performance. This paper deals with a multi-echelon distribution inventory system made of suppliers, distributors and retailers. The retailer faces stochastic demands placed by customers and replenishing from its distributor, which in turn procures from its supplier at the upstream of the chain. The main purpose of this simulation model is to analyze the multi-echelon distribution system behavior according some key performance metrics such as cost and backorder, as well as customer service level at each echelon.

Suggested Citation

  • Hamid Ech-Cheikh & Saâd Lissane Elhaq & Ahmed Rachid & Abdessamad Douraid, 2014. "Simulating Demand Uncertainty and Inventory Control Variability of Multi-Echelon Distribution Supply Chain," International Journal of Applied Logistics (IJAL), IGI Global, vol. 5(2), pages 12-31, April.
  • Handle: RePEc:igg:jal000:v:5:y:2014:i:2:p:12-31
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