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Heuristics for Handling Direct Upstream Demand in Two-Echelon Distribution Inventory Systems

In English

Författare

Summary, in English

This paper considers a two-echelon distribution inventory system with a central warehouse and a number of retailers. There is direct customer demand also at the warehouse. If this upstream demand requires a high service, it may be advantageous to give higher priority to customer orders compared to retailer replenishments. We suggest and evaluate techniques for handling this situation. One technique means that we have an extra separate stock point for the direct customer demand at the warehouse. Another technique means that we apply a so-called critical level policy at the warehouse, i.e., if the stock on hand at the warehouse is less than or equal to the critical level, retailer replenishments are backordered.

Avdelning/ar

Publiceringsår

2007

Språk

Engelska

Sidor

266-270

Publikation/Tidskrift/Serie

International Journal of Production Economics

Volym

108

Issue

1-2

Dokumenttyp

Artikel i tidskrift

Förlag

Elsevier

Ämne

  • Transport Systems and Logistics
  • Probability Theory and Statistics

Nyckelord

  • Stochastic
  • Upstream customer demand
  • Inventory management
  • Two level

Status

Published

ISBN/ISSN/Övrigt

  • ISSN: 0925-5273