Adaptive inventory control models for supply chain management

Chang Ouk Kim, J. Jun, J. K. Baek, R. L. Smith, Y. D. Kim

Research output: Contribution to journalArticle

51 Citations (Scopus)

Abstract

Uncertainties inherent in customer demands make it difficult for supply chains to achieve just-in-time inventory replenishment, resulting in loosing sales opportunities or keeping excessive chain-wide inventories. In this paper, we propose two adaptive inventory-control models for a supply chain consisting of one supplier and multiple retailers. The one is a centralized model and the other is a decentralized model. The objective of the two models is to satisfy a target service level predefined for each retailer. The inventory-control parameters of the supplier and retailers are safety lead time and safety stocks, respectively. Unlike most extant inventory-control approaches, modelling the uncertainty of customer demand as a statistical distribution is not a prerequisite in the two models. Instead, using a reinforcement learning technique called action-value method, the control parameters are designed to adaptively change as customer-demand patterns changes. A simulation-based experiment was performed to compare the performance of the two inventory-control models.

Original languageEnglish
Pages (from-to)1184-1192
Number of pages9
JournalInternational Journal of Advanced Manufacturing Technology
Volume26
Issue number9-10
DOIs
Publication statusPublished - 2005 Oct 1

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Inventory control
Supply chain management
Supply chains
Reinforcement learning
Sales
Experiments

All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Software
  • Mechanical Engineering
  • Computer Science Applications
  • Industrial and Manufacturing Engineering

Cite this

Kim, Chang Ouk ; Jun, J. ; Baek, J. K. ; Smith, R. L. ; Kim, Y. D. / Adaptive inventory control models for supply chain management. In: International Journal of Advanced Manufacturing Technology. 2005 ; Vol. 26, No. 9-10. pp. 1184-1192.
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Adaptive inventory control models for supply chain management. / Kim, Chang Ouk; Jun, J.; Baek, J. K.; Smith, R. L.; Kim, Y. D.

In: International Journal of Advanced Manufacturing Technology, Vol. 26, No. 9-10, 01.10.2005, p. 1184-1192.

Research output: Contribution to journalArticle

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