Inventory management optimization model with database synchronization through internet network (A simulation study)

Abstract

In the past (classical supply chain) the supply of goods generally flow starts from factory or producer, then producer sent to a storage area called the warehouse. When finished goods are collected, the goods from storage area or warehouse (WH) is distributed to the distribution center (DC). Then after the goods were placed in the Distribution center, then the goods are shipped to the retailer (retailer). The drawback of this system is when there is a shortage of goods at the retail level, it takes a long time in the distribution of goods, from warehouse into the retailer. With the approach of the Physical Internet (PI), where the objective is to combine into a unified logistics network, the system is inter connected, the inventory can be shared through hubs that serve the market and distribution of resources. In other way, the function of warehouse and distribution center was replaced by hubs that serve to optimize transport and inventory. Although the physical internet inventory control model better than the classical model, but the model of inventory management with database synchronization better than the physical Internet. With the aproach database synchronization, several hubs can be combined into one hubs, and the plant can also sending goods directly to the retailer. In addition to optimizing transport and inventory, this analysis allows to choose a dynamic source when an order is placed: source substitution. Although this calculation is working on a computer simulation, the main intent of this paper is to define new research model inventory controlling better than classical inventory model and physical internet inventory model, which is inventory management model in synchronized database.