Heuristic Coordination of Decentralized Inventory Systems Using Induced Backorder Costs
(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:
https://lup.lub.lu.se/record/633034
- author
- Berling, Peter LU and Marklund, Johan LU
- organization
- publishing date
- 2006
- 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}}, }