Thesis/Capstone
Publication Date
Authored by
Topic(s) Covered:
  • Inventory
Abstract

Chiquita, a fresh produce distributor with a multi-echelon supply chain, wants to develop an optimal inventory policy that results in the lowest inventory costs, while maintaining 95% service levels at each echelon. We developed a simulation model to determine the optimal inventory policy. The model’s input parameters include inventory holding costs, shrinkage costs, lost sales costs, forecast accuracy, and service levels. After using the model to determine the optimal inventory policy, we tested the sensitivity of the multi-echelon supply chain under the optimal policy with respect to forecast errors and transportation lead time.

Authors: Thomas Hsien and Yogeshwar D. Suryawanshi
Advisor: Amanda Schmitt