Heuristic Coordination of Decentralized Inventory Systems Using Induced Backorder Costs

Summary, in English

In this paper, we investigate a one-warehouse multiple-retailer system, where the inventory control decisions are coordinated using a near optimal induced backorder cost, β*. All installations use continuous review installation-stock (R, Q) policies. The analysis builds on an approximation model where the stochastic warehouse delays are replaced by their correct averages. The contributions include insights as to how β* is influenced by system parameters, and the determination of simple closed form β* estimates. The latter offering a practical means to achieve coordinated control of large size systems.

• Författare: Peter Berling; Johan Marklund
• Avdelning/ar: Produktionsekonomi
• Publiceringsår: 2006
• Språk: Engelska
• Sidor: 294-310
• Publikation/Tidskrift/Serie: Production and Operations Management
• Volym: 15
• Issue: 2
• Länkar: http://www.atypon-link.com/POMS/doi/abs/10.5555/ijop.2006.15.2.294
• Dokumenttyp: Artikel i tidskrift
• Förlag: Wiley-Blackwell
• Ämne: Transport Systems and Logistics
• Nyckelord: Inventory control; Coordination; Studies; Heuristic; Supply chains
• Status: Published
• ISBN/ISSN/Övrigt: ISSN: 1059-1478