Performance analysis of some supply chain replenishment strategies

Proper inventory management reduces the distribution expenses and improves the performance of supply chains (SCs). In this study, the performance of some replenishment strategies (RSs) in terms of bullwhip effect (BWE), SC fill rate and total cost of SC, under impulse and average demand with standard error demand processes (DPs) is analysed by simulation. The results show that the performance of fixed-order quantity and average demand strategies is better with respect to BWE and SC fill rate, and the total cost of SC under (s, S) is the best when compared with other strategies studied. The number of impulses (NI) and the magnitude of impulses (MIs) have shown an impact on the performance of the RS. The BWE is decreased when variation in customer DP is increased in inventory position-based strategies. The analysis also shows that the impulse DP can be approximated with the average DP having standard error.