Abstract

ABSTRACTThis research focuses on the method of inventory management to find out the best way in various SCM. There are several comparable methods of inventory management like Min-Max, regular interval, fixed target inventory that have different lead-time and demand for each product. Also, the inventory performances between the case of three- stages and two-stages in SCM are analyzed. 8 scenarios for the simulation are suggested considering order ways and stages. Input data for the simulation is from the result of the previous studies and actual data in the market. The performance measurements are selected as sales revenue, total number of sales, total delivery cost, total inventory shortages, the number of inventory shortage occurrence, the loss for inventory shortages, average inventory, handling cost, net profit. According to the results of the simulation, fixed target inventory management is better than existing inventory management method by net profit and inventory and so on. Also, it was confirmed that the increase in profit is obtained when SCM stages is reduced from three-stages to two-stages in existing SCM. The result of the research provides significant meaning that newly introduced target inventory management system shows good performance and SCM performance can be improved by reducing the stages.

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