Multi-echelon Inventory System Selection: Case of Distribution Systems

<!DOCTYPE html>    <html>  <head> <meta charset="utf-8" /> <title>Multi-echelon Inventory System Selection: Case of Distribution Systems</title>  <link rel="shortcut icon" type="image/ico" href="./data/ijsom/coversheet/favicon.ico" />  <meta name="viewport" content="width=device-width, maximum-scale=1, initial-scale=1, user-scalable=0" />   <meta name="keywords" content="Supply Chain Management,Multi-echelon inventory management,Distribution systems,Multi-Criteria Decision Making,Pharmaceutical products supply chain" /> <meta name="description" content="Inventory management presents numerous challenges for many supply chains as they are becoming more complex and composed of multiple stages. Using appropriate multi-echelon inventory management policies allows supply chains to deliver the required level of responsiveness efficiently by optimizing inventory levels across the entire network and improving customer service levels. This paper provides a Multi-Criteria Decision Making (MCDM) approach for the multi-echelon inventory system selection problem. The scope of this paper is limited to the case of Distribution systems. The suggested approach identifies for a given supply chain configuration, a set of selection criteria related to supply chain costs and overall responsiveness. These criteria are used to compare and choose the best alternative from different multi-echelon distribution inventory system configurations by using a suitable MCDM method. Eight different multi-echelon distribution inventory system alternatives are generated. Each one is a combination of three main inventory policies: (i) replenishment policies, (ii) ordering policies, and (iii) safety stock allocation policies. The suggested approach is illustrated in the case of the pharmaceuticals products supply chain in the public sector in Morocco. Depending on the decision problem nature and other criteria, the AHP method proved to be the suitable MCDM method for selecting the best multi-echelon inventory system for the Moroccan pharmaceutical products supply chain. The analysis indicates that assigning inventory to the most downstream facilities close to patients and adopting an installation stock ordering policy implemented by a decentralized decision system is the best option for the supply chain considered in the case study." /> <meta name="title" content="Multi-echelon Inventory System Selection: Case of Distribution Systems" /> <meta name="googlebot" content="NOODP" /> <meta name="citation_title" content="Multi-echelon Inventory System Selection: Case of Distribution Systems" /> <meta name="citation_author" content="Sbai, Noucaiba" /> <meta name="citation_author_institution" content="Department of Industrial Engineering Mohammed V University, Rabat, Morocco" /> <meta name="citation_author" content="Benabbou, Loubna" /> <meta name="citation_author_institution" content="Departement of Management Sciences, University of Quebec at Rimouski, Lévis, Québec, Canada" /> <meta name="citation_author" content="Berrado, Abdelaziz" /> <meta name="citation_author_institution" content="Department of Industrial Engineering Mohammed V University, Rabat, Morocco" /> <meta name="citation_abstract" content="Inventory management presents numerous challenges for many supply chains as they are becoming more complex and composed of multiple stages. Using appropriate multi-echelon inventory management policies allows supply chains to deliver the required level of responsiveness efficiently by optimizing inventory levels across the entire network and improving customer service levels. This paper provides a Multi-Criteria Decision Making (MCDM) approach for the multi-echelon inventory system selection problem. The scope of this paper is limited to the case of Distribution systems. The suggested approach identifies for a given supply chain configuration, a set of selection criteria related to supply chain costs and overall responsiveness. These criteria are used to compare and choose the best alternative from different multi-echelon distribution inventory system configurations by using a suitable MCDM method. Eight different multi-echelon distribution inventory system alternatives are generated. Each one is a combination of three main inventory policies: (i) replenishment policies, (ii) ordering policies, and (iii) safety stock allocation policies. The suggested approach is illustrated in the case of the pharmaceuticals products supply chain in the public sector in Morocco. Depending on the decision problem nature and other criteria, the AHP method proved to be the suitable MCDM method for selecting the best multi-echelon inventory system for the Moroccan pharmaceutical products supply chain. The analysis indicates that assigning inventory to the most downstream facilities close to patients and adopting an installation stock ordering policy implemented by a decentralized decision system is the best option for the supply chain considered in the case study." /> <meta name="citation_id" content="2870" /> <meta name="citation_publication_date" content="2022/02/01" /> <meta name="citation_date" content="2022-02-01" /> <meta name="citation_journal_title" content="International Journal of Supply and Operations Management" /> <meta name="citation_issn" content="23831359" /> <meta name="citation_volume" content="9" /> <meta name="citation_issue" content="1" /> <meta name="citation_firstpage" content="108" /> <meta name="citation_lastpage" content="125" /> <meta name="citation_publisher" content="Kharazmi University" /> <meta name="citation_doi" content="10.22034/ijsom.2021.109031.2138" /> <meta name="DC.Identifier" content="10.22034/ijsom.2021.109031.2138" /> <meta name="citation_abstract_html_url" content="http://www.ijsom.com/article_2870.html" /> <meta name="citation_pdf_url" content="http://www.ijsom.com/article_2870_b2f2f4cfee5ddca3b94030677f0ea908.pdf" /> <meta name="DC.Title" content="Multi-echelon Inventory System Selection: Case of Distribution Systems" /> <meta name="DC.Source" content="International Journal of Supply and Operations Management" /> <meta name="DC.Date" content="01/02/2022" /> <meta name="DC.Date.issued" content="2022-02-01" /> <meta name="DC.Format" content="application/pdf" /> <meta name="DC.Contributor" content="Sbai, Noucaiba" /> <meta name="DC.Contributor" content="Benabbou, Loubna" /> <meta name="DC.Contributor" content="Berrado, Abdelaziz" /> <meta name="og:title" content="Multi-echelon Inventory System Selection: Case of Distribution Systems" /> <meta name="og:description" content="Inventory management presents numerous challenges for many supply chains as they are becoming more complex and composed of multiple stages. Using appropriate multi-echelon inventory management policies allows supply chains to deliver the required level of responsiveness efficiently by optimizing inventory levels across the entire network and improving customer service levels. This paper provides a Multi-Criteria Decision Making (MCDM) approach for the multi-echelon inventory system selection problem. The scope of this paper is limited to the case of Distribution systems. The suggested approach identifies for a given supply chain configuration, a set of selection criteria related to supply chain costs and overall responsiveness. These criteria are used to compare and choose the best alternative from different multi-echelon distribution inventory system configurations by using a suitable MCDM method. Eight different multi-echelon distribution inventory system alternatives are generated. Each one is a combination of three main inventory policies: (i) replenishment policies, (ii) ordering policies, and (iii) safety stock allocation policies. The suggested approach is illustrated in the case of the pharmaceuticals products supply chain in the public sector in Morocco. Depending on the decision problem nature and other criteria, the AHP method proved to be the suitable MCDM method for selecting the best multi-echelon inventory system for the Moroccan pharmaceutical products supply chain. The analysis indicates that assigning inventory to the most downstream facilities close to patients and adopting an installation stock ordering policy implemented by a decentralized decision system is the best option for the supply chain considered in the case study." /> <meta name="og:url" content="http://www.ijsom.com/article_2870.html" />  <link href="./themes/base/front/assets/css/social-icon-font.css" rel="stylesheet" type="text/css" />  <link href="./themes/base/front/assets/plugins/bootstrap/css/bootstrap.min.css?v=0.02" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/header.css?v=0.05" rel="stylesheet" type="text/css" /> <link href="./themes/old/front/assets/css/footer.css" rel="stylesheet" type="text/css" /> <link href="./inc/css/essentials.css?v=0.2" rel="stylesheet" type="text/css" /> <link href="./inc/css/cookieconsent.min.css" rel="stylesheet" type="text/css" /> <link href="./inc/css/print.css" rel="stylesheet" type="text/css" media="print"/>  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<ul class="list-inline list-inline-seprator margin-bottom-6 ltr"> <li class="padding-3"> <a href="./?_action=article&au=123801&_au=Noucaiba++Sbai">Noucaiba Sbai</a> <sup><a href="mailto:noucaibasbai@research.emi.ac.ma" data-toggle="tooltip" data-placement="bottom" title="Email to Corresponding Author"><i class="fa fa-envelope-o" ></i></a></sup> <sup><a href="#aff1" >1</a></sup> </li> <li class="padding-3"> <a href="./?_action=article&au=124863&_au=Loubna++Benabbou">Loubna Benabbou</a> <sup><a href="#aff2" >2</a></sup> </li> <li class="padding-3"> <a href="./?_action=article&au=124864&_au=Abdelaziz++Berrado">Abdelaziz Berrado</a> <sup><a href="#aff1" >1</a></sup> </li> </ul> <p class="margin-bottom-3 ltr" id="aff1"> <sup>1</sup> Department of Industrial Engineering Mohammed V University, Rabat, Morocco </p> <p class="margin-bottom-3 ltr" id="aff2"> <sup>2</sup> Departement of Management Sciences, University of Quebec at Rimouski, Lévis, Québec, Canada </p> <div class="margin-bottom-3 ltr" id="ar_doi" title="DOI"><i class="ai ai-doi size-25 text-orange"></i> <span dir="ltr"><a href="https://dx.doi.org/10.22034/ijsom.2021.109031.2138">10.22034/ijsom.2021.109031.2138</a></span></div> <p style="margin:12px -2px 0 -2px"><strong>Abstract</strong></p> <div class="padding_abstract justify ltr">Inventory management presents numerous challenges for many supply chains as they are becoming more complex and composed of multiple stages. Using appropriate multi-echelon inventory management policies allows supply chains to deliver the required level of responsiveness efficiently by optimizing inventory levels across the entire network and improving customer service levels. This paper provides a Multi-Criteria Decision Making (MCDM) approach for the multi-echelon inventory system selection problem. The scope of this paper is limited to the case of Distribution systems. The suggested approach identifies for a given supply chain configuration, a set of selection criteria related to supply chain costs and overall responsiveness. These criteria are used to compare and choose the best alternative from different multi-echelon distribution inventory system configurations by using a suitable MCDM method. Eight different multi-echelon distribution inventory system alternatives are generated. Each one is a combination of three main inventory policies: (i) replenishment policies, (ii) ordering policies, and (iii) safety stock allocation policies. The suggested approach is illustrated in the case of the pharmaceuticals products supply chain in the public sector in Morocco. Depending on the decision problem nature and other criteria, the AHP method proved to be the suitable MCDM method for selecting the best multi-echelon inventory system for the Moroccan pharmaceutical products supply chain. The analysis indicates that assigning inventory to the most downstream facilities close to patients and adopting an installation stock ordering policy implemented by a decentralized decision system is the best option for the supply chain considered in the case study.</div> <p class="padding-0" style="margin:12px -2px 0 -2px"><strong>Keywords</strong></p> <ul class="block list-inline list-inline-seprator margin-bottom-6 ltr"> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=102141&_kw=Supply+Chain+Management" >Supply Chain Management</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=106274&_kw=Multi-echelon+inventory+management" >Multi-echelon inventory management</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=106275&_kw=Distribution+systems" >Distribution systems</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=106211&_kw=Multi-criteria+decision+making" >Multi-criteria decision making</a> </li> <li class="padding-3"> <a class="tag_a" href="./?_action=article&kw=106276&_kw=Pharmaceutical+products+supply+chain" >Pharmaceutical products supply chain</a> </li> </ul> </div> <hr> <div class="page_break"></div> <div class="panel"> <div class="panel-heading card-header"> <h4 class="panel-title "> <a data-toggle="collapse" data-parent="#accordions" href="#collapsesRef"><i class="fa fa-plus"></i> References</a> </h4> </div> <div id="collapsesRef" class="panel-collapse collapse"> <div class="panel-body justify"> <div class="padding-3 margin-top-3 ltr justify">Arora, M., Gigras, Y., (2018). 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Multi-echelon Inventory System Selection: Case of Distribution Systems