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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
2020-12-29 01:19:55
@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},
  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},
}