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Approximate Optimization of a Two-Level Distribution Inventory System

Axsäter, Sven LU (2002) In International Journal of Production Economics 81-82. p.545-553
Abstract
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.
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Multi-echelon, Inventory/production, Continuous review, Stochastic demand, Batch ordering policies
in
International Journal of Production Economics
volume
81-82
pages
545 - 553
publisher
Elsevier
external identifiers
  • Scopus:0037431627
ISSN
0925-5273
DOI
10.1016/S0925-5273(02)00270-0
language
English
LU publication?
yes
id
e9b571c9-b37f-477d-8e4c-878e64a0e6bb (old id 636919)
date added to LUP
2008-02-04 12:27:03
date last changed
2016-10-13 04:34:57
@misc{e9b571c9-b37f-477d-8e4c-878e64a0e6bb,
  abstract     = {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.},
  author       = {Axsäter, Sven},
  issn         = {0925-5273},
  keyword      = {Multi-echelon,Inventory/production,Continuous review,Stochastic demand,Batch ordering policies},
  language     = {eng},
  pages        = {545--553},
  publisher    = {ARRAY(0x810ec30)},
  series       = {International Journal of Production Economics},
  title        = {Approximate Optimization of a Two-Level Distribution Inventory System},
  url          = {http://dx.doi.org/10.1016/S0925-5273(02)00270-0},
  volume       = {81-82},
  year         = {2002},
}