Abstract
This paper analyzed the advantage of operation mode of supply hub based on third-party logistics, discussed the traditional replenishment mode and the milk-run replenishment mode of supply hub. By introducing the inventory penalty cost in the model, two total cost optimization models of supply chain system for two different replenishment modes were established. The numerical study shows that collaborative replenishment under supply-hub mode can get optimal replenishment times of all suppliers and reduce the total cost of supply chain. Under the same conditions, milk-run replenishment model can larger decrease the total cost of the supply chain comparing with traditional replenishment model for supply hub. The overall inventory levels of supply chain declined significantly after the introduction of penalty cost function under two different replenishment modes.
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Schedule a callMore From: 2010 International Conference on Computer Application and System Modeling (ICCASM 2010)
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