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An improved decision rule for emergency replenishments

In English

Författare

  • Sven Axsäter

Summary, in English

This paper provides a new decision rule for emergency replenishments in an inventory system. The decision rule is a generalization of a previous decision rule suggested and evaluated in Axsater (2003, 2007). An improvement step is added to this rule and this often means considerably better performance. The decisions are based on complete information about the system state. An advantage with our decision rule is its generality. It is possible to handle batch ordering, compound Poisson demand and emergency replenishments that take time. The decision rule has also a performance guarantee in the sense that emergency replenishments will always lead to lower expected costs. The rule can also be used in connection with lateral transshipments. (C) 2014 Elsevier B.V. All rights reserved.

Avdelning/ar

Publiceringsår

2014

Språk

Engelska

Sidor

313-317

Publikation/Tidskrift/Serie

International Journal of Production Economics

Volym

157

Dokumenttyp

Artikel i tidskrift

Förlag

Elsevier

Ämne

  • Transport Systems and Logistics

Nyckelord

  • Inventory
  • Stochastic
  • Emergency replenishments
  • Lateral transshipments

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 0925-5273