Building Supply Chain Resilience through Virtual Stockpile Pooling

摘要: Stockpiling inventory is an essential strategy for building supply chain resilience. It enables firms to continue operating while finding a solution unexpected event that causes disruption or demand surge. While extremely valuable when actually deployed, stockpiles incur large holding costs and usually provide no benefits until such time. To help reduce this cost, study presents new approach managing stockpiles. We show if leveraged intelligently, can also organization better meet its own regular by enabling type of virtual pooling we call stockpile (VSP). The idea VSP first integrate the into several locations' buffers then dynamically reallocate among these locations in reaction realizations achieve kind transshipment. how execute determine it most value, formulate stylized multi-location stochastic model solve optimal allocation order policies. significant cost savings: some cases nearly full (i.e., effectively maintains free), other savings traditional physical pooling. Last, our results prescribe implementing with many stockpiles, but only few small