Title: Dynamic planning design of three level distribution network with horizontal and vertical exchange

Authors: Abdennour Ilyas Benfriha; Lamia Triqui-Sari; Aimade Eddine Bougloula; Mohammed Bennekrouf

Addresses: Laboratory of Automation and Manufacturing Engineering, Industrial Engineering Department, Batna 2 University, Batna 05000, Algeria ' Manufacturing Engineering Laboratory of Tlemcen, Engineering Sciences Department, Aboubekr Belkaïd University, BP 230, Tlemcen 13000, Algeria ' Laboratory of Automation and Manufacturing Engineering, Industrial Engineering Department, Batna 2 University, Batna 05000, Algeria ' Manufacturing Engineering Laboratory of Tlemcen, Engineering Sciences Department, Aboubekr Belkaïd University, BP 230, Tlemcen 13000, ESSA Tlemcen, Algeria

Abstract: Inventory management in distribution networks remains a challenging task due to the demand nature and the limited storage capacity. In this work, we study a three-level, a multi-product and a multi-period distribution network consisting of a central warehouse, three distribution centres and six wholesalers. Each of them faces a random demand. In order to optimise the inventory management in the distribution network, we first propose to make a horizontal cooperation between actors of the same level in the form of product exchange; then we propose a second approach based on vertical-horizontal cooperation. Both approaches are modelled as a MIP model and solved using the CPLEX solver. The objective of this study is to analyse the performance in terms of costs, quantities in stock and customer satisfaction.

Keywords: inventory management; distribution network; supply chain; product exchange; cooperation.

DOI: 10.1504/IJLSM.2024.136859

International Journal of Logistics Systems and Management, 2024 Vol.47 No.3, pp.295 - 326

Received: 07 May 2021
Accepted: 09 Jul 2021
Published online: 23 Feb 2024 *

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