This document discusses using a push-pull inventory optimization strategy for multi-tier, multi-channel supply chains. It proposes creating a push-pull boundary within the manufacturing supply chain by strategically placing work-in-process inventory at suppliers. This creates a push system upstream and a pull system downstream. An optimization model determines the optimal safety stock levels to minimize costs while meeting demand variability and required service time. A system dynamics model shows this strategy significantly improves the supply chain's ability to respond to sudden demand increases with reduced working capital.

Using System Dynamics To Evaluate A Push-Pull Inventory Optimization Strategy For Multi-Tier, Multi-Channel Supply Chains PDF

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