ON OBLIQUE TRANSFER MECHANISM DYNAMIC (OPERATIONAL) COMPLEXITIES IN DELIVER CHAIN SYSTEM
Abstract
Because of horizontal connections between retailers, replenishment rules, and time delays, supply chain dynamics are very complicated. This article seeks to explore the impacts of oblique transference on stability, the bullwhip effect, and other performance characteristics in a two-tiered supply chain system with one supplier and two retailers. A hybrid discrete-time state space model was specifically developed by us to support two different order placement scenarios. Through the application of analytical stability data, we found that ineffective Oblique Transference tactics readily disrupt the supply chain system. The lead times of the Oblique Transference add to the stability problem. Theoretical conclusions are tested in simulation experiments, and the influence of system parameters on performance indicators is investigated through numerical analysis. According to numerical models, latitudinal transshipped items improve both stores' customer service ratings.
It's also important to remember that the needs of the two shops may still be satisfied even if only one store places orders with the upstream provider.
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