A numerical study on the effect of the balance assumption in one-warehouse multi-retailer inventory systems

Flexible Services and Manufacturing Journal

Volumn 21, Issue 3-4, 2009, Pages 114-147

  Doǧru, Mustafa K ^a   De Kok, A G ^b   Van Houtum, G J ^b  

^a LUCENT TECHNOLOGIES   (United States)

^b EINDHOVEN UNIVERSITY OF TECHNOLOGY   (Netherlands)

Author keywords

[No Author keywords available]

Indexed keywords

ALLOCATION RULE; BALANCE ASSUMPTION; CURSE OF DIMENSIONALITY; DIMENSIONAL DYNAMICS; DISTRIBUTION SYSTEMS; DYNAMIC PROGRAMS; EXTENSIVE TESTING; HEURISTIC POLICIES; INVENTORY SYSTEMS; LOWER BOUNDS; NUMERICAL STUDIES; OPTIMAL COSTS; OPTIMAL POLICIES; ORIGINAL MODEL; PERIODIC REVIEW; RELAXED PROBLEM; SMALL GAPS; UPPER AND LOWER BOUNDS; UPPER BOUND;

WAREHOUSES;

OPTIMIZATION;

EID: 79951852733     PISSN: 19366582     EISSN: 19366590     Source Type: Journal    
DOI: 10.1007/s10696-010-9064-1     Document Type: Article

References (36)

1. Aviv Y, Federgruen A (2001) Capacitated multi-item inventory systems with random and seasonally fluctuating demands: implications for postponement strategies. Manage Sci 47:512-531 (Pubitemid 34192779)
2. Axsäter S (2003) Supply chain operations: serial and distribution inventory systems. In: de Kok AG, Graves SC (eds) Handbook in operations research and management science, volume 11: design and analysis of supply chains. Elsevier, Amsterdam, pp 525-559
3. Axsäter S, Marklund J, Silver EA (2002) Heuristic methods for centralized control of one-warehouse, N-retailer inventory systems. M&SOM 4:75-97
4. Bollapragada S, Akella R, Srinivasan R (1998) Centralized ordering and allocation policies in a two-echelon system with non-identical warehouses. Eur J Oper Res 106:74-82
5. Cachon GP, Fisher M (2000) Supply chain inventory management and the value of shared information. Manage Sci 46:1032-1048
6. Cao D, Silver EA (2005) A dynamic allocation heuristic for centralized safety stock. Naval Res Log 52:513-526 (Pubitemid 41423767)
7. Chen F, Zheng YF (1994) Lower bounds for multi-echelon stochastic inventory problems. Manage Sci 40:1426-1443
8. Clark AJ, Scarf H (1960) Optimal policies for a multi-echelon inventory problem. Manage Sci 6:475-490
9. de Kok AG (1990) Hierarchical production planning for consumer goods. Eur J Oper Res 45:55-69
10. Diks EB, de Kok AG (1998) optimal control of a divergent N-echelon inventory system. Eur J Oper Res 111:75-97 (Pubitemid 128401642)
11. Diks EB, de Kok AG (1999) Computational results for the control of a divergent N-echelon inventory system. Int J Prod Econ 59:327-336
12. Doǧru MK (2006) Optimal control of one-warehouse multi-retailer systems: an assessment of the balance assumption. Ph.D. thesis, Beta Research School, D77, Technische Universiteit Eindhoven, Eindhoven
13. Doǧru MK, van Houtum GJ, de Kok AG (2005) A numerical study on the effect of the balance assumption in one-warehouse multi-retailer inventory systems. Beta Working Paper, WP 135, Department of Technology Management, Technische Universiteit Eindhoven
14. Eppen G, Schrage L (1981) Centralized ordering policies in a multi-warehouse system with lead times and random demand. In: Schwarz LB (ed) Multi-level production-inventory control systems: theory and practice. North-Holland, pp 51-67
15. Erkip N, Hausman WH, Nahmias S (1990) Optimal centralized ordering policies in multi-echelon inventory systems with correlated demands. Manage Sci 36:381-392
16. Federgruen A, Zipkin P (1984a) Allocation policies and cost approximations for multilocation inventory systems. Naval Res Log Q 31:97-129 (Pubitemid 14550595)
17. Federgruen A, Zipkin P (1984b) Approximations of dynamic, multi-location production and inventory problems. Manage Sci 30:69-84 (Pubitemid 14531746)
18. Federgruen A, Zipkin P (1984c) Computational issues in an infinite-horizon, multi-echelon inventory model. Oper Res 32:818-836 (Pubitemid 14641216)
19. Gallego G, Özer Ö, Zipkin P (2007) Bounds, heuristics, and approximations for distribution systems. Oper Res 55:503-517 (Pubitemid 351159506)
20. Graves SC (1996) A multiechelon inventory model with fixed replenishment intervals. Manage Sci 42:1-18 (Pubitemid 126545080)
21. Jackson PL (1988) Stock allocation in a two-echelon distribution system or "what to do until your ship comes in". Manage Sci 34:880-895
22. Jackson PL, Muckstadt JA (1989) Risk pooling in a two-period, two-echelon inventory stocking and allocation problem. Naval Res Log 36:1-26
23. Jönsson H, Silver EA (1987) Analysis of a two-echelon inventory control system with complete redistribution. Manage Sci 33:215-277
24. Kumar A, Jacobson SH (1998) Optimal and near-optimal decisions for procurement and allocation of a critical resource with a stochastic consumption rate. Working Paper, University of Michigan Business School
25. Kumar A, Schwarz LB, Ward JE (1995) Risk-pooling along a fixed delivery route using a dynamic inventory-allocation policy. Manage Sci 41:344-362
26. Kunnumkal S, Topaloglu H (2008) A duality-based relaxation and decomposition approach for inventory distribution systems. Naval Res Log 55:612-631
27. McGavin EJ, Schwarz LB, Ward JE (1993) Two-interval inventory-allocation policies in a one-warehouse, N-identical-retailer distribution system. Manage Sci 39:1092-1107
28. Özer Ö (2003) Replenishment strategies for distribution systems under advance demand information. Manage Sci 49:255-272
29. Tijms HC (2003) A first course in stochastic models. Wiley, Chichester
30. van der Heijden MC (1997) Supply rationing in multi-echelon divergent systems. Euro J Oper Res 101:532-549 (Pubitemid 127399940)
31. van der Heijden MC (1999) Multi-echelon inventory control in divergent systems with shipping frequencies. Euro J Oper Res 116:331-351
32. van der Heijden MC, Diks EB, de Kok AG (1997) Stock allocation in general multi-echelon distribution systems with (R, S) order-up-to-policies. Int J Prod Econ 49:157-174 (Pubitemid 127382400)
33. van Donselaar K (1990) Integral stock norms in divergent systems with lot-sizes. Euro J Oper Res 45:70-84
34. van Donselaar K, Wijngaard J (1987) Commonality and safety stocks. Eng Costs Prod Econ 12:197-204
35. Verrijdt JHCM, de Kok AG (1995) Distribution planning for a divergent N-echelon network without intermediate stocks under service restrictions. Int J Prod Econ 38:225-243
36. Zipkin P (1984) On the imbalance of inventories in multi-echelon systems. Math Oper Res 9:402-423