Study on Twice-Ordering Efficiency in Quick Response Strategy by Simulation
Jianjun Zhang, Jiazhen Huo · Logistics · 2009
Based on designing simulation model for twice-ordering strategy in supply chain, this paper illustrates the following conclusion by a specific case: Compared with once-ordering strategy, twice-ordering one can promote the decision-maker's expected income as well as lowering either the ordered quantity or the overstock at the end of the season even if the precision of demand forecast remains unimproved. On the contrary, if demand forecast can be more precise, this strategy can bring greater increase of income, and at the same time, decrease of ordered quantity and overstock.