A Comparison of System Dynamics between Time-based and Quantity-based VMI Consolidation Replenishment System
In this paper, we present system dynamics models of a time-based consolidation replenishment system in VMI (TCR-VMI) and a quantity-based consolidation replenishment system in VMI (QCR-VMI), which focus on the effects of replenishment cycle or economical replenishment quantity on system dynamics and bullwhip effect in supply chain. We design practical dynamic simulations under a sequence of random demands to explore the system cost and bullwhip effect under different replenishment cycle in TCR-CMI and those under different replenishment quantity in QCR-VMI. The results show that the bullwhip effect is becoming more and more evident as a replenishment cycle is getting longer in TCR-VMI or an economical replenishment quantity is getting larger in QCR-VMI, and the curve of system cost is a kind of concave function with economical replenishment quantity or replenishment cycle. In comparison, the bullwhip effect in QCR-VMI is a bit stronger than that in TCR-VMI. However, the system cost in QCR-VMI is less than that in TCR-VMI. Finally, we present comparisons and analyses of policy points such as appropriate situation, implement condition and etc. between QCR-VMI and TCR-VMI, we believe that models and analyses presented here provide a basis for finding an agreeable replenishment cycle or an economical replenishment quantity in VMI for coordinating system costs reducing and bullwhip effect controlling in supply chain.
Zhang LiBo Zhang Qin
Nanjing University of Aeronautics & Astronautics, Nanjing 210016, China
国际会议
2007年IEEE灰色系统与智能服务国际会议(2007 IEEE International Conference on Grey Systems and Intelligent Services)
南京
英文
2007-11-18（万方平台首次上网日期，不代表论文的发表时间）