Order-up-to-level policy update procedure for a supply chain subject to market demand uncertainty

• Published in: Computers & industrial engineering Vol. 113; pp. 347 - 355
• Main Authors: Pacheco, Eduardo de Oliveira, Cannella, Salvatore, Lüders, Ricardo, Barbosa-Povoa, Ana Paula
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.11.2017
• Subjects: Bullwhip effect; Discrete event simulation; Inventory control; Order-up-to-level policy; Supply chain; Supply chain; Bullwhip effect; Inventory control; Order-up-to-level policy; Discrete event simulation

•We propose a new dynamic order policy for a supply chain with uncertainty in demand.•Inventory consumption occurs at random time intervals and demand a random quantity of items.•The new order policy avoids propagation of uncertainty through SC levels.•This policy mitigates the bullwhip effect, mini...