A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering in Industrial and Manufacturing Engineering, School of Engineering and Technology

Thesis (M.Eng.) - Asian Institute of Technology, 2009

Collaboration Planning, Forecasting and Replenishment, (CPFR) in itself, is only a guideline that helps the collaborations between supply chain partners. Therefore, CPFR alone will not ensure that the supply chain will be efficiently managed. The main focus of this study is on how the supply chain performances can be affected when collaborative replenishment is applied at various decision making levels. This research considers three levels of replenishment collaboration which include headquarter (HQ), distribution center (DC), and store of the retailer. The inventory system is operated under a periodic review and order {u2013}up {u2013}to levels policy. Simulation models are used to evaluate customer satisfaction and total supply chain cost under uncertainties in demand, replenishment lead time and capacity. The results show that overall store collaborative replenishment strategy at the store level performs significantly better when compared with collaboration at the HQ and DC levels. However, adoption of business practice depends on specific business condition. It also involves trade-offs between customer service and the operation costs, as well as benefits for all participants in a collaborative value chain.