An improved decision rule for emergency replenishments
Author
Summary, in English
This paper provides a new decision rule for emergency replenishments in an inventory system. The decision rule is a generalization of a previous decision rule suggested and evaluated in Axsater (2003, 2007). An improvement step is added to this rule and this often means considerably better performance. The decisions are based on complete information about the system state. An advantage with our decision rule is its generality. It is possible to handle batch ordering, compound Poisson demand and emergency replenishments that take time. The decision rule has also a performance guarantee in the sense that emergency replenishments will always lead to lower expected costs. The rule can also be used in connection with lateral transshipments. (C) 2014 Elsevier B.V. All rights reserved.
Department/s
Publishing year
2014
Language
English
Pages
313-317
Publication/Series
International Journal of Production Economics
Volume
157
Document type
Journal article
Publisher
Elsevier
Topic
- Transport Systems and Logistics
Keywords
- Inventory
- Stochastic
- Emergency replenishments
- Lateral transshipments
Status
Published
ISBN/ISSN/Other
- ISSN: 0925-5273