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Demand management in Multi-Stage Distribution Chain
de Kok,T. Janssen,F.B.S.L.P.
de Kok,T.
Janssen,F.B.S.L.P.
Abstract
In this paper we discuss demand management problems in a multi-stage distribution chain.We focus on distribution chains where demand processes have high variability due to a few large customer orders.We give a possible explanation, and suggest two simple procedures that help to smooth demand.It is shown that these procedures yield stock reductions of 40%-50% in practical situations.The quantitative results are based on the analysis of the underlying model related to the two procedures proposed, called large order overflow, applicable if the supplying organization executes a multi-stage distribution chain, and delivery splitting, applicable to any situation.
Description
Pagination: 23
Date
1996
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Publisher
Operations research
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39.pdf
Adobe PDF, 302.71 KB
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Keywords
demand, distribution
Citation
de Kok, T & Janssen, F B S L P 1996 'Demand management in Multi-Stage Distribution Chain' CentER Discussion Paper, vol. 1996-39, Operations research, Tilburg.