Optimizing safety stock placement in supply chains

The measure of safety stock to hold at every phase in a supply chain is a vital issue for a manufacturing company. The measure of stock held ought to be little to limit hold and capacity costs while holding the capacity to serve clients on time and fulfill most, if not all, of the request. This paper examines this problem by using the structure of deterministic administration time models and gives a calculation to the safety stock situation in general-network supply chains. We first demonstrate that the general issue is NP-hard. Next, we build up a few conditions that describe an ideal arrangement of the general- network issue. We give a polynomial calculation to take care of these issues. We play out anarrangement of computational tests to survey the execution of the general-network calculation and to decide how to set different parameters for the calculation. In addition to the general network case, we consider two-layer network issues. We develop a nonlinear model for determining the level of safety stock in different components of the supply chain with the aim of minimizing the related safety stock costs.

Keywords:

Supply chains , Network problems , Safety stock , Optimization algorithms