The One-Warehouse Multiretailer Problem with an Order-Up-To Level Inventory Policy

Date

2010-10-01

Author

Solyali, Oguz
Süral, Haldun
Denizel, Meltem

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

173
views

0
downloads

We consider a two-level system in which a warehouse manages the inventories of multiple retailers. Each retailer employs an order-up-to level inventory policy over T periods and faces an external demand which is dynamic and known. A retailer's inventory should be raised to its maximum limit when replenished. The problem is to jointly decide on replenishment times and quantities of warehouse and retailers so as to minimize the total costs in the system. Unlike the case in the single level lot-sizing problem, we cannot assume that the initial inventory will be zero without loss of generality. We propose a strong mixed integer program formulation for the problem with zero and nonzero initial inventories at the warehouse. The strong formulation for the zero initial inventory case has only T binary variables and represents the convex hull of the feasible region of the problem when there is only one retailer. Computational results with a state-of-the art solver reveal that our formulations are very effective in solving large-size instances to optimality. (C) 2010 Wiley Periodicals, Inc. Naval Research Logistics 57: 653-666, 2010

Subject Keywords

Management Science and Operations Research, Modelling and Simulation, Ocean Engineering

URI

https://hdl.handle.net/11511/38625

Journal

NAVAL RESEARCH LOGISTICS

DOI

https://doi.org/10.1002/nav.20428

Collections

Department of Industrial Engineering, Article

Suggestions

OpenMETU
Core

Heuristics for multi-item two-echelon spare parts inventory control subject to aggregate and individual service measures Topan, Engin; Bayındır, Zeynep Pelin; Tan, Tarkan (Elsevier BV, 2017-01-01) We consider a multi-item two-echelon spare parts inventory system in which the central warehouse operates under a (Q, R) policy and local warehouses implement (S-1,S) policy. The objective is to find the policy parameters minimizing expected system-wide inventory holding and fixed ordering subject to aggregate and individual response time constraints. Using an exact evaluation we provide a very efficient and effective heuristic, and also a tight lower bound for real-world, large-scale two-echelon spare part...
An exact solution procedure for multi-item two-echelon spare parts inventory control problem with batch ordering in the central warehouse Topan, Engin; Bayındır, Zeynep Pelin; Tan, Tarkan (Elsevier BV, 2010-09-01) We consider a multi-item two-echelon inventory system in which the central warehouse operates under a (Q, R) policy, and the local warehouses implement basestock policy. An exact solution procedure is proposed to find the inventory control policy parameters that minimize the system-wide inventory holding and fixed ordering cost subject to an aggregate mean response time constraint at each facility.
A new approximate evaluation method for two-echelon inventory systems with emergency shipments Oezkan, Erhun; VAN HOUTUM, Geert-Jan; Serin, Yaşar Yasemin (Springer Science and Business Media LLC, 2015-01-01) We consider the inventory control of repairable spare parts in a network consisting of a central warehouse, a central repair facility, and multiple local warehouses. Demands for spare parts occur at the local warehouses. If a local warehouse is out of stock, then an arriving demand is satisfied by an emergency shipment from the central warehouse or the central repair facility. Such emergency shipments are common practice for networks that support technical systems with high downtime costs. We develop a new ...
Assessing the benefits of remanufacturing option under one-way substitution and capacity constraint Bayındır, Zeynep Pelin; Gullu, Refik (Elsevier BV, 2007-02-01) In this article, we investigate the profitability of remanufacturing option when the manufactured and remanufactured products are segmented to different markets and the production capacity is finite. A single period profit model under substitution is constructed to investigate the system conditions under which remanufacturing is profitable. We present analytical findings and computational results to show profitability of remanufacturing option under substitution policy subject to a capacity constraint of th...
Lagrangean relaxation based heuristics for lot sizing with setup times Süral, Haldun; Van Wassenhove, Luk N. (Elsevier BV, 2009-04-01) We consider a lot sizing problem with setup times where the objective is to minimize the total inventory carrying cost only. The demand is dynamic over time and there is a single resource of limited capacity. We show that the approaches implemented in the literature for more general versions of the problem do not perform well in this case. We examine the Lagrangean relaxation (LR) of demand constraints in a strong reformulation of the problem. We then design it primal heuristic to generate upper bounds and ...

Citation Formats

O. Solyali, H. Süral, and M. Denizel, “The One-Warehouse Multiretailer Problem with an Order-Up-To Level Inventory Policy,” NAVAL RESEARCH LOGISTICS, pp. 653–666, 2010, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/38625.