Discussion of inventory control on multi-stages logistics system (Proposal of rolling planning method under uncertain demand)

A planning method for multi-stage logistic system is proposed to reduce total logistics costs and stock-out under uncertain demand. Mathematical model is constructed to decide logistics between different locations and inventory at locations. The proposed method is applied to decide logistics plan in continuous time periods as rolling planning method. The problem involves two types of significant measures: logistics costs in the system and stock-out at shops. In order to reduce total logistics cost, virtual logistics process generated through plural periods is considered in the mathematical model. In addition, inventory control at shops is included to reduce probability of stock-out at all shops in the model. Strategy to control inventory for reduction of probability of stock-out is applied under the condition logistic cost is reduced to execute rolling planning in multi-periods. The proposed method is compared with Pull system as the conventional procedure to evaluate the effectiveness of the method. Further, characteristics of the proposed method are investigated on simple data using probability distribution of demand in practical use. ©2013 The Japan Society of Mechanical Engineers.