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An inventory control model with interconnected logistic services for vendor inventory management

Abstract : This paper proposes an inventory control model taking advantage of interconnected logistic services in the Physical Internet for fast-moving consumer goods (FMCG) sector. Unlike current hierarchical inventory model where the source of each is pre-assigned, the goods are stored and distributed in an interconnected and open network of PI-hubs which enables storage capacity and transportation sharing among different companies around the network. As a result, theoretically, the suppliers can push their goods all around the network and the retailers can be served by any hub in the network. A non-linear global optimization inventory model to minimize the total logistic costs is proposed and a heuristic using simulated annealing is applied to solve the problem. Numerical experiments are taken to compare the performance of the proposed PI inventory model and classic inventory control model for different settings of a typical supply network. Results suggest that the PI inventory control model can always reduce the total logistic cost while reaching a comparable or improved end customer service level.
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https://hal-mines-paristech.archives-ouvertes.fr/hal-01217344
Contributor : Yanyan Yang <>
Submitted on : Monday, October 19, 2015 - 2:33:08 PM
Last modification on : Wednesday, October 14, 2020 - 3:52:32 AM
Long-term archiving on: : Wednesday, January 20, 2016 - 12:52:31 PM

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  • HAL Id : hal-01217344, version 1

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Yanyan Yang, Shenle Pan, Eric Ballot. An inventory control model with interconnected logistic services for vendor inventory management. Second International Conference of Physical Internet , CGS, MINES ParisTech, France, Jul 2015, PARIS, France. ⟨hal-01217344⟩

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