Closed-Loop Logistics Based on Dynamic Multi-Buffer Management

Forecasting and push system are implemented to help enterprises do the replenishment in traditional supply chain. However, the forecasting is not always accurate. Once the market trend turns down, company has to face the fact of much higher inventory which can significantly affect to profit margin. The more types of products and material the company has, the more difficult to manage. Based on the Dynamic Buffer Management (DBM), this paper tries to study another way study of Demand-Pull way, Dynamic Multi-Buffer Management (DMBM), to help enterprise to manage multi-products. With ABC classification to manage different type of products and material, Imperialist Competition Algorithm (ICA) is used to find factors of service level and adjustment factors for DMBM. Moreover, Lagrangian Relaxation with Surrogate Sub-Gradient Method is used to make inventory management and manufacturing system coordinated. The proposed method has been used in a company, and the result is satisfactory.