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Improvement in the Coupling of Procurement Process and Production Planning by Simulation Under Stochastic Demand and Lead Time

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Inventory control management is an essential matter in supply chain, which helps to maintain an optimum level of investment in the inventory. This requires a global optimization of a complex logistics and inventory system. In this paper, we present a simulation model characterizing the complex dynamic behavior of procurement system that takes into account the coupling with production planning, in the context of stochastic demand and delivery lead-time. We have carried out this model in order to fill up the existing researches, as this area of study has not been dealt with sufficiently in the literature. Moreover, this model was developed for multiple-supplier, multiproduct and convergent bill of materials, also we introduced two characteristics to model each type of decision, the anticipation period and the delay in obtaining. The outcomes of our simulator are in the form of several scenarios generated by simulation replications, these results proving the strength of the chosen approach.
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Simulation Model; Inventory Control; Stochastic Demand and Delivery Lead Time; Procurement and Production Coupling; Simulation Scenarios

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