Modeling and Simulation of a Centralized Supply Chain Distribution System for a Single Product in Uncertain Demand

Abstract

This paper describes modeling and simulation of a centralized supply chain distribution system for a single product in uncertain demand. A supply chain distribution system cost optimization model is developed in this concern, which includes multiple manufacturers, multiple distribution centers and multiple retailers. To provide a more realistic model structure, decision makers’ thinks that the distribution centers and retailers appears out of stock at the same time. With the MatLab 2010(a) carrying on the model, analyzing the influence which the order proportions and transportation cost in distribution centers and retailers to the supply chain distribution system total cost. As a result, on the one hand, when the order proportion is in the middle, the total cost is in the lowest level in supply chain distribution system. On the other hand, the order proportion is up and down, the total cost is no obvious change in supply chain distribution system. On the contrary, when the transportation cost usually is in the middle, the total cost is the lowest level in supply chain distribution system.