Inventory Planning with Batch Ordering in Multi-echelon Multi-product Supply Chain by Queuing Approach

Abstract

In this paper, we apply queuing models for performance evaluation analysis in multi-product multiechelon manufacturing supply chain network with batch ordering. The analysis is clubbed with an inventory optimization model, which can be used for designing inventory policies for each product. We consider a three-echelon supply chain: retailers, warehouses and manufacturing plants supply types of products to various retailers. Production system is MTS and we use queue operating under inventory control rule to analyze the performance of any manufacturing plant. Proposed model determines the optimal inventory level at the warehouse of each product that minimizes total expected cost. Moreover, we extend the proposed model in order to analyze the logistics process.