Coordinated Replenishment Policy for a Decentraliz

Authors: Jianhong Yu Fengjiao Wan Qichao Zhou

Publish Date: 2015

Volume: , Issue: , Pages: 161-166

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Abstract

To analyze effects of coordination we consider a decentralized assembly system which consists of two suppliers one supply hub and one manufacturer We propose two kinds of component replenishment policy including decentralized strategy and coordinated strategy We compare both strategies and show that cost advantage of the coordinated strategy than the decentralized strategy is mainly governed by the cost structure and the service level We examine and discuss the relation between parameters and the optimal component replenishment policy

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