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Inventory Control in Divergent Supply Chains with Time-Based Dispatching and Shipment Consolidation

Marklund, Johan LU (2011) In Naval Research Logistics 58(1). p.59-71
Abstract
This article analyses a divergent supply chain consisting of a central warehouse and N nonidentical retailers. The focus is on joint evaluation of inventory replenishment and shipment consolidation effects. A time-based dispatching and shipment consolidation policy is used at the warehouse in conjunction with real-time point-of-sale data and centralized inventory information. This represents a common situation, for example, in various types of vendor managed inventory systems. The main contribution is the derivation of an exact recursive procedure for determining the expected inventory holding and backorder costs for the system, under the assumption of Poisson demand. Two heuristics for determining near optimal shipment intervals are also... (More)
This article analyses a divergent supply chain consisting of a central warehouse and N nonidentical retailers. The focus is on joint evaluation of inventory replenishment and shipment consolidation effects. A time-based dispatching and shipment consolidation policy is used at the warehouse in conjunction with real-time point-of-sale data and centralized inventory information. This represents a common situation, for example, in various types of vendor managed inventory systems. The main contribution is the derivation of an exact recursive procedure for determining the expected inventory holding and backorder costs for the system, under the assumption of Poisson demand. Two heuristics for determining near optimal shipment intervals are also presented. The results are applicable both for single-item and multiitem systems. (C) 2011 Wiley Periodicals, Inc. Naval Research Logistics 58: 59-71, 2011 (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
inventory/production, multiechelon, shipment consolidation, continuous, review, stochastic, Poisson demand
in
Naval Research Logistics
volume
58
issue
1
pages
59 - 71
publisher
John Wiley & Sons
external identifiers
  • wos:000286857600005
  • scopus:79251612498
ISSN
0894-069X
DOI
10.1002/nav.20441
language
English
LU publication?
yes
id
a7804352-cf35-424d-9451-0d2a70b3c24b (old id 1877895)
date added to LUP
2011-04-15 15:46:57
date last changed
2017-10-22 03:06:05
@article{a7804352-cf35-424d-9451-0d2a70b3c24b,
  abstract     = {This article analyses a divergent supply chain consisting of a central warehouse and N nonidentical retailers. The focus is on joint evaluation of inventory replenishment and shipment consolidation effects. A time-based dispatching and shipment consolidation policy is used at the warehouse in conjunction with real-time point-of-sale data and centralized inventory information. This represents a common situation, for example, in various types of vendor managed inventory systems. The main contribution is the derivation of an exact recursive procedure for determining the expected inventory holding and backorder costs for the system, under the assumption of Poisson demand. Two heuristics for determining near optimal shipment intervals are also presented. The results are applicable both for single-item and multiitem systems. (C) 2011 Wiley Periodicals, Inc. Naval Research Logistics 58: 59-71, 2011},
  author       = {Marklund, Johan},
  issn         = {0894-069X},
  keyword      = {inventory/production,multiechelon,shipment consolidation,continuous,review,stochastic,Poisson demand},
  language     = {eng},
  number       = {1},
  pages        = {59--71},
  publisher    = {John Wiley & Sons},
  series       = {Naval Research Logistics},
  title        = {Inventory Control in Divergent Supply Chains with Time-Based Dispatching and Shipment Consolidation},
  url          = {http://dx.doi.org/10.1002/nav.20441},
  volume       = {58},
  year         = {2011},
}