Inventory model of supply chain management 3-echelon multi-tiers

摘要

The SCM model of 3-echelon is used to optimize the expenditure by minimizing the inventory use that can generally increase the additional expenditure in the system. This paper develops an SCM model of 3-echelon multi-tiers that is comprised suppliers s, producers p, and retails r. The model was developed using deterioration rate assumption of raw material and finished product following Weibull distribution rate. The research use Taylor's expansion method to determine the numeric solution of the model that had been developed. The result indicates that the developed model can be used to optimize the total expenditure in the system of SCM 3-echelon multi-tiers.