Article: Diverse replenishment frequency model for TOC supply chain replenishment systems with capacity constraints Journal: International Journal of Modelling, Identification and Control (IJMIC) 2013 Vol.19 No.3 pp.248 - 256 Abstract: When the theory of constraints (TOC) supply chain replenishment system (TOC-SCRS) is deployed in a plant or a central warehouse, replenishment frequency (RF) becomes one of the important decision parameters and depends on the sales or replenishment quantity (RQ) in the plant. The higher RF is preferred by TOC for the low inventory and the fast response to different market requirements. However, when sales significantly increase and capacity is not enough, the lower RF is required to save the setup capacity. Some existing RF determination models substantially increased in inventory. This paper proposes a diverse RF model for TOC-SCRS with capacity constraints so that the RF will only moderately increase in inventory. A numeric example is utilised to evaluate the proposed method and a prototype is further provided to demonstrate its feasibility and performance. The proposed model will enable a plant or a central warehouse to successfully implement an effective TOC-SCRS. Inderscience Publishers - linking academia, business and industry through research

Title: Diverse replenishment frequency model for TOC supply chain replenishment systems with capacity constraints

Authors: Xiaoyun Jiang; Hornghuei Wu; Taiping Tsai; Huosheng Hu

Addresses: Department of Management Science, Xiamen University of Technology, Xiamen, Fujian 361024, China ' Department of Business Administration, Chung Hua University, No. 707, Sec. 2, WuFu Rd., Hsinchu 300, Taiwan ' Institute of Industrial Management, Chung Hua University, No. 707, Sec. 2, WuFu Rd., Hsinchu 300, Taiwan ' School of Computer Science and Electronic Engineering, University of Essex, Colchester CO4 3SQ, UK

Abstract: When the theory of constraints (TOC) supply chain replenishment system (TOC-SCRS) is deployed in a plant or a central warehouse, replenishment frequency (RF) becomes one of the important decision parameters and depends on the sales or replenishment quantity (RQ) in the plant. The higher RF is preferred by TOC for the low inventory and the fast response to different market requirements. However, when sales significantly increase and capacity is not enough, the lower RF is required to save the setup capacity. Some existing RF determination models substantially increased in inventory. This paper proposes a diverse RF model for TOC-SCRS with capacity constraints so that the RF will only moderately increase in inventory. A numeric example is utilised to evaluate the proposed method and a prototype is further provided to demonstrate its feasibility and performance. The proposed model will enable a plant or a central warehouse to successfully implement an effective TOC-SCRS.

Keywords: replenishment frequency models; TOC; theory of constraints; supply chain replenishment; inventory replenishment; capacity constraints; supply chain management; SCM; modelling.

DOI: 10.1504/IJMIC.2013.055430

International Journal of Modelling, Identification and Control, 2013 Vol.19 No.3, pp.248 - 256

Published online: 27 Sep 2014 *

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Title: Diverse replenishment frequency model for TOC supply chain replenishment systems with capacity constraints

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