Multiobjective analysis of supply chain performance in terms of inventory, cost and service level
Due to rapid globalization process, distribution channels of products have been enlarged to global scale and become more complicated. Therefore, manufacturing companies has been paying more attention to delivery and inventory control in recent decades. Reducing cost and maintaining high service leve...
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| Format: | Theses and Dissertations |
| Language: | English |
| Published: |
2019
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| Online Access: | http://hdl.handle.net/10356/76933 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | Due to rapid globalization process, distribution channels of products have been enlarged to global scale and become more complicated. Therefore, manufacturing companies has been paying more attention to delivery and inventory control in recent decades. Reducing cost and maintaining high service level could help companies gain more benefit in the market. But cost, service level and inventory conflicts with each other in nature.
This research analyzes the trade-offs of inventory, cost and service level based on the data from Company D. Relationship between inventory and service level is characterized in (r, Q) and base stock model. Varying lead time and order quantity are considered as approaches to reduce inventory level. Then, delivery costs of different transportation modes are calculated, with advantages and disadvantages analyzed. Trade-off curve of cost- service level is given, showing various solutions, from which decision makers can choose flexibly.
It is found that a slight increase in inventory can bring a large improvement in service level within 99.30%. Lower lead time and order quantity help achieve a reduced inventory level. In terms of transportation in this supply chain, air freight is more expensive, but provides shorter lead time, which is only 1⁄4 lead time of ocean freight. Operation recommendations for the two transportation modes are given, and trade-off between cost and service level is analyzed.
As a decision support, information this research provides can help Company D optimize current inventory management and delivery performance, which also applies to supply chains of other products |
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