The impact of replenishment frequency on the logistics cost: a simulation approach

The aim of this research is to optimise logistics cost through fractal supply network by investigating the effect of different replenishment frequencies within fractal supply network. A new mathematical model is developed through which inventory holding cost and transportation cost can be integrated and measured at different sub-fractal of the fractal supply network. The proposed mathematical model is implemented through the hypothetical fractal supply network and validated using Supply Chain GURU Simulation Software. Application of the proposed mathematical model provides a systematic method through which practitioners should be able to decide upon replenishment frequency at different sub-fractal of the network. Moreover, it shows that the proposed fractal supply network and its capabilities have ability to optimise and achieve the lowest logistics cost through the supply network.