Performance Evaluation of Complex Multi-Echelon Distribution Supply Chain

In this work, we consider a multi-echelon multi products distribution supply chain with a supplier, a central distribution center and multiple regional distribution centers. Each participant places its orders to the upstream (previous) echelon. The demand and lead time are assumed to be stochastic. The interval time of replenishment, the safety stock, the capacity stock and the measure of performance of the global system are calculated with specific mathematic equations. The objective of this study is to examine the impacts of varying combined distribution management policies, on the systems total costs and service level. According to these policies, various scenarios are predefined, and framework of discrete event simulation is developed. Thereafter, different scenarios are simulated in order to discuss and compare their results with references scenarios. The results are illustrated with suitable numerical examples.