Title: Modelling and simulation of stock-out cost pulled collaborative supply chain planning

Authors: Yanfang Huo, Jie Wang, Bingguang Li, Binshan Lin

Addresses: School of Management, Tianjin University, Tianjin, 300072, China. ' School of Management, Tianjin University, Tianjin, 300072, China. ' Harry F. Byrd, Jr. School of Business, Shenandoah University, Winchester, Virginia, VA 22601 USA. ' College of Business Administration, Louisiana State University in Shreveport, Shreveport, LA 71115, USA

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.

Keywords: modelling; collaborative planning; distributed supply chains; purchasing-production-distribution models; stock-out cost; supply chain management; SCM; supply chain planning; linear programming; simulation.

DOI: 10.1504/IJMOM.2010.035253

International Journal of Modelling in Operations Management, 2010 Vol.1 No.1, pp.3 - 28

Published online: 18 Sep 2010 *

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