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Modelling and simulation of stock-out cost pulled collaborative supply chain planning
by Yanfang Huo, Jie Wang, Bingguang Li, Binshan Lin
International Journal of Modelling in Operations Management (IJMOM), Vol. 1, No. 1, 2010

 

Abstract: This paper studies the collaborative planning problems of the processes of purchase, production and distribution in the supply chain systems. With the objective of optimising the total cost, we establish a linear programming model for collaborative supply chain systems pulled by stock-out cost. Then, the model is verified by a simulation sample with LINGO programming, and the expected results are achieved. At the end, the paper discusses the general changing patterns of the main variables in the model caused by the stock-cost.

 

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