The Effects of Resupply Flexibility on the Design of Service Parts Supply Systems : A Simulation Optimization Study

Filip Van Utterbeeck, Hartanto Wong, Dirk Van Oudheusden, Dirk Cattrysse

Research output: Contribution to journalArticlepeer-review

Abstract

We apply simulation optimization to determine the optimal design and stock distribution for a single item supply system with a one-for-one replenishment policy. We investigate both the effect of the number of echelons and the degree of resupply flexibility, considering single-echelon and two-echelon systems with either no resupply flexibility, lateral tran- shipments only or both lateral transhipments and emergency deliveries. We show that the implementation of an emergency delivery option allows an augmentation of the frac- tion of customers served by lateral transhipments and that increased resupply flexibility enables increasingly important cost savings.
Original languageUndefined/Unknown
Pages (from-to)72-85
Number of pages14
JournalTransportation Research Part E: Logistics and Transportation
Volume45
Issue number1
Publication statusPublished - 2009

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