Research Article
Inbound Multi-echelon Inventory Supply Network Model in Ethiopian Leather Industry: A Simulation Study
@INPROCEEDINGS{10.1007/978-3-030-15357-1_35, author={Robel Negussie and Jeyaraju Jayaprakash}, title={Inbound Multi-echelon Inventory Supply Network Model in Ethiopian Leather Industry: A Simulation Study}, proceedings={Advances of Science and Technology. 6th EAI International Conference, ICAST 2018, Bahir Dar, Ethiopia, October 5-7, 2018, Proceedings}, proceedings_a={ICAST}, year={2019}, month={3}, keywords={Discrete event simulation Multi-echelon inventory Multi-criteria decision Supply chain}, doi={10.1007/978-3-030-15357-1_35} }- Robel Negussie
Jeyaraju Jayaprakash
Year: 2019
Inbound Multi-echelon Inventory Supply Network Model in Ethiopian Leather Industry: A Simulation Study
ICAST
Springer
DOI: 10.1007/978-3-030-15357-1_35
Abstract
Leather processing companies are highly affected due to irregular availability of raw hide and skin by trends of globalization and dynamic behaviour of meat usage in Ethiopia. Maintaining optimal inventory stock in inbound multi-echelon supply networks is more complex in nature due to high fluctuation of raw materials availability. This paper presents a deterministic optimal procurement inventory policy among four designed inventory replenishment strategies in the tanning industries to avoid fluctuation raw materials. We proposed simulation model for these four different procurement strategies of raw materials in each inbound multi-echelon supply network. After running the trial simulation, a significant method of controlling the inventory level in the tanneries while keeping the operating performance in a reasonable level is achieved. The outputs are analyzed using ARENA simulation inventory stock information in every tier of the supply chain network. Finally simulated outputs of these strategies in each level are compared with performance using analytic hierarchy process (AHP) a multi-criteria decision model.