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Approximate Optimization of a Two-Level Distribution Inventory System

På svenska

Author

  • Sven Axsäter

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.

Publishing year

2002

Language

English

Pages

545-553

Publication/Series

International Journal of Production Economics

Volume

81-82

Document type

Journal article

Publisher

Elsevier

Topic

  • Transport Systems and Logistics

Keywords

  • Multi-echelon
  • Inventory/production
  • Continuous review
  • Stochastic demand
  • Batch ordering policies

Status

Published

ISBN/ISSN/Other

  • ISSN: 0925-5273