Track: Inventory Control and Management

Abstract

Currently, most of the companies manage inventory in a traditional supply chain approach. But due to the company’s policies in return services and remanufacturing processes, a traditional supply chain is not nearly effective. The importance on working on inventory control is because of the difficulty of having a stable inventory control due to bullwhip effect which reduces the performance of supply chain. There is now Close Loop Supply Chain (CLSC) use for the benefit of companies as it is very effective in reverse logistic flow. This effects the collection and distribution planning, inventory control, and production planning which reduces the effect in returnability which will increase the performance of the company. This project focuses on inventory control. This work successfully develops System Dynamic (SD) model of the system for returns, using close loop diagrams, to have effective management of inventory control and remanufacturing and/or production planning. Fuzzy Logic is used in the framework analysis to optimize inventory control and reduce the bullwhip effect in the real-world. This fuzzy decision makes the system less uncertain and creates lower bullwhip effect.