Real-time order tracking for supply systems with multiple transportation stages
A system with a manufacturer, retailer, and multiple transport stages is studied. The model evaluates the value of real-time information on system operating cost. The expected cost of system operation is computed using a stochastic model. Retailer ordering policies with and without tracking information are studied. It is shown that real time tracking information can yield significant cost savings.
stochastic processes shipment tracking stochastic lead time information sharing markov chain value of information