Research on Coordinated Replenishments by Alternative Supply Sources in a Logistics System

摘要

This paper sets up two models in two-level logistics system with two distributors and two retailers. In the first model, the distributor makes ordering for one retailer only, in the second model, the distributor can act as alternative supply source when the other one is out of stock. It is shown by theoretical and computational analyses that the model with coordinated replenishments by alternative supply sources outperforms the other one with regard to reducing reorder point and total costs of the logistics system.