A hybrid inventory control system approach applied to the food industry

  • Authors:
  • David Claudio;Jie Zhang;Ying Zhang

  • Affiliations:
  • Pennsylvania State University, University Park, PA;Pennsylvania State University, University Park, PA;Pennsylvania State University, University Park, PA

  • Venue:
  • Proceedings of the 39th conference on Winter simulation: 40 years! The best is yet to come
  • Year:
  • 2007

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Abstract

The appropriate production and inventory control policy is a key factor for modern enterprises' success in competitive environment. In the food industry, most of food manufacturers adopt the make-to-order policy to improve their punctuality and flexibility, while some scholars provided other different opinions. This study provides a hybrid policy combining a make-to-order push strategy with priority with a make-to-stock pull strategy. In this policy, the pull strategy is considered for the regular demands while customers who tell their demand needs in advance are treated with a push strategy and are given a higher priority than those who don't share information. Through a set of simulation experiments by AutoMod model, this policy is proved to be of great efficiency, effectiveness and applicability.