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Heuristics for Handling Direct Upstream Demand in Two-Echelon Distribution Inventory Systems

Axsäter, Sven LU ; Olsson, Fredrik LU and Tydesjö, Patrik LU (2007) In International Journal of Production Economics 108(1-2). p.266-270
Abstract
This paper considers a two-echelon distribution inventory system with a central warehouse and a number of retailers. There is direct customer demand also at the warehouse. If this upstream demand requires a high service, it may be advantageous to give higher priority to customer orders compared to retailer replenishments. We suggest and evaluate techniques for handling this situation. One technique means that we have an extra separate stock point for the direct customer demand at the warehouse. Another technique means that we apply a so-called critical level policy at the warehouse, i.e., if the stock on hand at the warehouse is less than or equal to the critical level, retailer replenishments are backordered.
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Stochastic, Upstream customer demand, Inventory management, Two level
in
International Journal of Production Economics
volume
108
issue
1-2
pages
266 - 270
publisher
Elsevier
external identifiers
  • WOS:000247793900030
  • Scopus:34249938724
ISSN
0925-5273
DOI
10.1016/j.ijpe.2006.12.014
language
English
LU publication?
yes
id
80f634d5-4ca0-4fb3-943e-7cae755e3057 (old id 629464)
date added to LUP
2007-12-07 11:53:51
date last changed
2017-01-01 08:13:23
@article{80f634d5-4ca0-4fb3-943e-7cae755e3057,
  abstract     = {This paper considers a two-echelon distribution inventory system with a central warehouse and a number of retailers. There is direct customer demand also at the warehouse. If this upstream demand requires a high service, it may be advantageous to give higher priority to customer orders compared to retailer replenishments. We suggest and evaluate techniques for handling this situation. One technique means that we have an extra separate stock point for the direct customer demand at the warehouse. Another technique means that we apply a so-called critical level policy at the warehouse, i.e., if the stock on hand at the warehouse is less than or equal to the critical level, retailer replenishments are backordered.},
  author       = {Axsäter, Sven and Olsson, Fredrik and Tydesjö, Patrik},
  issn         = {0925-5273},
  keyword      = {Stochastic,Upstream customer demand,Inventory management,Two level},
  language     = {eng},
  number       = {1-2},
  pages        = {266--270},
  publisher    = {Elsevier},
  series       = {International Journal of Production Economics},
  title        = {Heuristics for Handling Direct Upstream Demand in Two-Echelon Distribution Inventory Systems},
  url          = {http://dx.doi.org/10.1016/j.ijpe.2006.12.014},
  volume       = {108},
  year         = {2007},
}