Heuristics for Handling Direct Upstream Demand in Two-Echelon Distribution Inventory Systems
(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.
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/629464
- author
- Axsäter, Sven LU ; Olsson, Fredrik LU and Tydesjö, Patrik LU
- organization
- publishing date
- 2007
- 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
- 2016-04-04 13:38:26
- date last changed
- 2023-01-06 02:46:22
@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}}, keywords = {{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}}, doi = {{10.1016/j.ijpe.2006.12.014}}, volume = {{108}}, year = {{2007}}, }