Simulation of Three-Tier Supply Chains with Product Shelf-Life Effects

Simulation models are used to examine the effects of shelf life on the performance of three-tier automatic pipeline, variable-inventory, and order-based production control system (APVIOBPCS) supply chains with different information delays between tiers with a fixed or variable inventory constructed using SIMULINK, which provides a response to a sudden demand sales rate and a finite shelf life. This incorporates the effects of product shelf life for each tier. It is assumed that for a finite shelf life, all parties practise a first-in, first-out operation.We show a substantial reduction in the number of discards, reducing carbon footprint and wasted resources. Fixed-inventory targets produce more discards than variable inventory, and vendor-managed inventory or electronic data transmission with discard feedback produce substantial reductions in discard.