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Heuristic Coordination of Decentralized Inventory Systems Using Induced Backorder Costs

Berling, Peter LU and Marklund, Johan LU (2006) In Production and Operations Management 15(2). p.294-310
Abstract
In this paper, we investigate a one-warehouse multiple-retailer system, where the inventory control decisions are coordinated using a near optimal induced backorder cost, β*. All installations use continuous review installation-stock (R, Q) policies. The analysis builds on an approximation model where the stochastic warehouse delays are replaced by their correct averages. The contributions include insights as to how β* is influenced by system parameters, and the determination of simple closed form β* estimates. The latter offering a practical means to achieve coordinated control of large size systems.
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Inventory control, Coordination, Studies, Heuristic, Supply chains
in
Production and Operations Management
volume
15
issue
2
pages
294 - 310
publisher
Wiley-Blackwell
external identifiers
  • scopus:33746145632
ISSN
1059-1478
language
English
LU publication?
yes
id
4fcc9843-3b21-4f12-ae53-a47b79dbfc2b (old id 633034)
alternative location
http://www.atypon-link.com/POMS/doi/abs/10.5555/ijop.2006.15.2.294
date added to LUP
2016-04-04 09:42:31
date last changed
2023-01-05 21:07:36
@article{4fcc9843-3b21-4f12-ae53-a47b79dbfc2b,
  abstract     = {{In this paper, we investigate a one-warehouse multiple-retailer system, where the inventory control decisions are coordinated using a near optimal induced backorder cost, β*. All installations use continuous review installation-stock (R, Q) policies. The analysis builds on an approximation model where the stochastic warehouse delays are replaced by their correct averages. The contributions include insights as to how β* is influenced by system parameters, and the determination of simple closed form β* estimates. The latter offering a practical means to achieve coordinated control of large size systems.}},
  author       = {{Berling, Peter and Marklund, Johan}},
  issn         = {{1059-1478}},
  keywords     = {{Inventory control; Coordination; Studies; Heuristic; Supply chains}},
  language     = {{eng}},
  number       = {{2}},
  pages        = {{294--310}},
  publisher    = {{Wiley-Blackwell}},
  series       = {{Production and Operations Management}},
  title        = {{Heuristic Coordination of Decentralized Inventory Systems Using Induced Backorder Costs}},
  url          = {{http://www.atypon-link.com/POMS/doi/abs/10.5555/ijop.2006.15.2.294}},
  volume       = {{15}},
  year         = {{2006}},
}