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Construction and Simulation of Coordinated Replenishment Model of Multi-level Inventory Based on CPFR

Author: DongYunLong
Tutor: ZuoShouFeng
School: Northeastern University
Course: Management Science and Engineering
Keywords: CPFR coordinated replenishment probability of ordering simulation
CLC: F274
Type: Master's thesis
Year: 2008
Downloads: 127
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Abstract

As entering into 21st century, with the globalization of economy and rapidly development of information technology, supply chain management is paid more and more attention either from theory or practice. As an integrated management ideology and method, supply chain management systemically and strategically harmonizes interior business departments in enterprise and functions between enterprises from the point of whole supply chain composed of vendor, manufacturer, distributor and retailer, even final customer. This would improve the long term performance of entire supply chain and all enterprises. Inventory cost is the main part of enterprise cost. So inventory management becomes the critical part in supply chain management. Traditional inventory management only manages and controls their own inventory materials. Inventory management under supply chain circumstance should expand sight from their own to the entire supply chain network, manage inventory coordinately. In this way, supply chain inventory cost is minimized and win-win result between enterprises would be reached. Today, study on the control and optimization for multiple levels CPFR (Collaborative Planning Forecasting and Replenishment, CPFR) under collaborative commerce model is an important issue of supply chain management. How to make use of the real-time information through coordinated plan to reduce the impact of uncertainty factors, enhance the accuracy of forecasting, reduce unnecessary inventory costs, is the pursuit of future business objectives.This paper concentrates on studying the problem of coordinated replenishment with alternative resources based on the CPFR. On the base of former research results of replenishment model in the supply chain, this text mainly studies that coordinated replenishment in multi-level supply chain with supplier、distributors and retailers. The main research contents include:(1) Elaborate on the three aspects of the theory of the supply chain、CPFR and supply chain inventory control. All the theories provide the full theoretical basis for the establishment of the models. (2) Establish the traditional replenishment model based on the quantities and the coordinated replenishment model based on CPFR of function relation between the order quantity of distributor and the order quantity of retailer. In the model of coordinated replenishment, the text introduces the probability parameter of ordering p to make it more perfect, more close to reality.(3) The purpose of solving the model is getting the minimum cost, and the paper adopt Matlab to finish our numerical simulation, then compared the cost of two models, and got the results that which had the advantage of lower cost in different scope.This paper researches on the coordinated replenishment model based on CPFR under the collaborative commerce. The study results can provide theoretical basis and practical experience and a new way of thinking and methods for implement CPFR. This paper shows that in most of the time, i.e. pless than a certain value of experience, the coordinated replenishment model with alternative supply sources based on CPFR has the advantages of lower cost of the total supply chain, compared to the traditional replenishment model based on the quantities.

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