Layered Optimization And Re-Hybrid Coordinated Replenishment Strategies With Multi-suppliers And Multi-retailers In The Inventory Distribution Systems

The distribution system means the product sells through a certain channel system tothe consumer, distribution is the product’s movement from the produce location to thesell location, and the product must be passed a certain distribute method then can arrivethe purchaser. The valid management of the distribution system is always the hot-pointand one of the most challenge problems in the scholar studies. The product currency iscarried out through the operation of the distribution system, so the enterprise distributionsystem’s efficiency influences the whole enterprise logistics cost and service leveldirectly.The multi-suppliers and multi-retailers model in the distribution system isconstituted of many different suppliers and many different retailers, and optimizing themulti-suppliers is an N-P hard problem under the distribution system. This paper uses alayered optimizing method: the first layer is the multiple retailers coordinatedreplenishment model that considered from the supplier perspective, and we study on thehybrid and re-hybrid replenishment strategies based on the IB and EB policies and basedon the EB and TB policies, respectively. In addition, we also study on the hybridcoordinated replenishment strategy under an inventory cost increasing system. Thesecond layer is the multiple suppliers’ model with the inventory cost increasing systemthat considered from the retailer perspective.Firstly, for the multiple retailers coordinated replenishment model, there are the threefamous policies EB (Echelon-based), IB (installation-based) and TB (Time-based), inwhich there are extreme cases of different level, and they are the cause of the unit ofproduct logistics costs’ important factors.Therefore, we establish the following policiesfrom decreasing the extremely cases perspective:(1) The re-hybrid policy RH1based onthe IB and EB. We propose the hybrid policy HB12firstly which avoids the large ordercosts of extreme cases by using of IB policy alone. RH1combines HB12and HB11; itavoids the large shortage costs of extreme cases by using of EB policy alone and the largeorder costs of extreme cases by using of IB policy alone at the same time.(2)There-hybrid policy RH2based on the EB and TB. We propose the hybrid policy HB21andHB22firstly, HB21reduces the large shortage costs of using TB policy alone in theretailers’ higher demand extreme case, and HB22reduces the large order costs of usingTB policy alone in the retailers’ lower demand extreme case. RH2combines HB21and HB22, it avoid the retailer’s demand is bigger when used alone TB strategy shortage costhigher extreme situations and in retailers demand more hours alone using the TB strategycost orders higher extreme case.To validate the performance of our proposed policy RH1and RH2, we numericallycompare their long run total cost ratios. The results show that, in the system of onewarehouse and N independent identical random demand retailers, RH1can improve totalcost ratio about policy IB, EB, TB, HB11and HB12, and RH2can improve total costratio about policy EB, TB, HB21and HB22, thereby the re-hybrid RH1, RH2performwell over the other policies.Secondly, we also study the hybrid policy RH1under an inventory costs increasingsystem, conclude that the system has trend of decreasing the maximum stock level, andnumerically show that the hybrid policy RH1can improve the IB, EB, HB11and HB12total cost ratio effectively in inventory costs increasing system.Finally, for the multiple suppliers’ model with the inventory cost increasing system,we consider supplier diversification based on binomial yields, and also show that theoptimal solution always with a single supplier in the inventory cost increasing system,and give the optimal solution. Thus we present: selecting “the Cheapest” supplier anddecreasing the number of suppliers are profits to the retailer; reducing the volume ofpurchase and increasing the supply frequency are also good for the retailer in theinventory cost increasing system.