Approximate Optimization of a Two-Level Distribution Inventory System
Författare
Summary, in English
A two-echelon distribution inventory system with a central warehouse and a number of retailers is considered. The retailers face stochastic demand. The system is controlled by continuous review installation stock (R,Q) policies with given batch quantities. There are linear holding costs at all locations and linear backorder costs at the retailers. We present a simple technique for approximate optimization of the reorder points. The technique means that we use normal approximations both for the retailer demand and the demand at the warehouse, i.e., the orders from the retailers.
Avdelning/ar
Publiceringsår
2002
Språk
Engelska
Sidor
545-553
Publikation/Tidskrift/Serie
International Journal of Production Economics
Volym
81-82
Dokumenttyp
Artikel i tidskrift
Förlag
Elsevier
Ämne
- Transport Systems and Logistics
Nyckelord
- Multi-echelon
- Inventory/production
- Continuous review
- Stochastic demand
- Batch ordering policies
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 0925-5273