Integrated Supply Chain Models with Random Demand and Flexible Production

In this proposal, some integrated supply chain models are considered. First, we consider a single-vendor single- manufacturer model with random demand. The manufacturer has flexible production rate. We consider the impact of demand randomness on the production rate and other parameters of the supply chain, such as, number of shipments, re-order point and order quantity of raw materials. The problem will be formulated mathematically and using discrete-event simulation. Second we consider single vendor three-customer problem with random demand using simulation and try to propose/evaluate optimal stationary distribution policies assuming constant production rates.