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Inbound Multi-echelon Inventory Supply Network Model in Ethiopian Leather Industry: A Simulation Study

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Advances of Science and Technology (ICAST 2018)

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Abstract

Leather processing companies are highly affected due to irregular availability of raw hide and skin by trends of globalization and dynamic behaviour of meat usage in Ethiopia. Maintaining optimal inventory stock in inbound multi-echelon supply networks is more complex in nature due to high fluctuation of raw materials availability. This paper presents a deterministic optimal procurement inventory policy among four designed inventory replenishment strategies in the tanning industries to avoid fluctuation raw materials. We proposed simulation model for these four different procurement strategies of raw materials in each inbound multi-echelon supply network. After running the trial simulation, a significant method of controlling the inventory level in the tanneries while keeping the operating performance in a reasonable level is achieved. The outputs are analyzed using ARENA simulation inventory stock information in every tier of the supply chain network. Finally simulated outputs of these strategies in each level are compared with performance using analytic hierarchy process (AHP) a multi-criteria decision model.

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Authors and Affiliations

  1. Faculty of Mechanical and Industrial Engineering, Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia

    Robel Negussie & Jeyaraju Jayaprakash

Authors
  1. Robel Negussie
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  2. Jeyaraju Jayaprakash
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Correspondence to Robel Negussie .

Editor information

Editors and Affiliations

  1. Faculty of Civil and Water Resources Engineering, Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia

    Fasikaw Atanaw Zimale

  2. Faculty of Civil and Water Resources Engineering, Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia

    Temesgen Enku Nigussie

  3. Faculty of Chemical and Food Engineering, Bahir Dar Institute of Technology, Bahir Dar University, Bahir Dar, Ethiopia

    Solomon Workneh Fanta

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© 2019 ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering

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Negussie, R., Jayaprakash, J. (2019). Inbound Multi-echelon Inventory Supply Network Model in Ethiopian Leather Industry: A Simulation Study. In: Zimale, F., Enku Nigussie, T., Fanta, S. (eds) Advances of Science and Technology. ICAST 2018. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering, vol 274. Springer, Cham. https://doi.org/10.1007/978-3-030-15357-1_35

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  • DOI: https://doi.org/10.1007/978-3-030-15357-1_35

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-15356-4

  • Online ISBN: 978-3-030-15357-1

  • eBook Packages: Computer ScienceComputer Science (R0)

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