As the uncertainty of the demand and the complexity of the supply chain net-work, the calculation of the short supply probability becomes very difficult to nterprises inthe supply chain network. This paper models the supply chain network into Markov process.We provide the formulas for calculating the probabilities of short supply and full inventory by using queuing theory. For the larger system, we propose the approximate method to eval-uate short supply probabilities of enterprises by decomposing the supply chain network into the collection of 2 level supply chain networks. This approximate method connects the sub-systems decomposed and the multi-stage supply chain network by modifing the parameters of each manufacturer’s batch delivery interval, each vendor’s batch delivery interval and each re-tailer’s batch delivery interval, and uses the subsystems to calculate the approximations of the steady-state probabilities of the short supply and the full inventory in enterprises. Numerical experiments illustrate that the proposed approximate method has very high accuracy.
QIU Li.
SOLUTION OF SHORT SUPPLY PROBABILITY IN SUPPLY CHAIN NETWORKS WITH STOCHASTIC DEMAND. Journal of Systems Science and Mathematical Sciences, 2012, 32(9): 1062-1071 https://doi.org/10.12341/jssms11980