Simulation and Analysis of the Complex Dynamic Behavior of Supply Chain Inventory System from Different Decision Perspectives

Table 1

Model variables and parameters.

Notation		Description
Variables		The actual demand of consumers in period t
		The forecast demand in period t
		Retailer’s initial inventory in period t
		Retailer’s end-of-cycle inventory in period t
		Retailer’s arrivals in period t
		Retailer’s sales in period t
		Retailer’s order quantity in period t
		Distribution center’s shipments in period t
		Distribution center’s initial inventory in period t
		Distribution center’s end-of-cycle inventory in period t
		Distribution center arrivals in period t
		The in-transit inventory of the distribution center in period t
		The replenishment volume of the distribution center in period t
		Warehouse shipments in period t
		Warehouse’s initial inventory in period t
		Warehouse’s end-of-cycle inventory in period t
		Warehouse arrivals in period t
		The initial inventory of system from the perspective of decision making in period t. When , it is local decision perspective. When , it is global decision perspective.
		The end-of-cycle inventory of system in period t
		The replenishment of the system of system from the perspective of decision making in period t. When , it is local decision perspective. When , it is global decision perspective.
		Supplier’s WIP inventory in period t
Parameters		The expected WIP inventory level of the supplier
		The adjustment coefficient of inventory
		The adjustment coefficient of WIP inventory
		Transport lead time
		Production lead time
		Safety inventory coefficient of the retailer
		Safety inventory coefficient of the distribution center
		Safety inventory coefficient of the system from the perspective of decision making. When , it is local decision perspective. When , it is global decision perspective.
		Retailer’s expected inventory level
		Distribution center’s expected inventory level
		The expected inventory level of system from the perspective of decision making. When , it is local decision perspective. When , it is global decision perspective.