An exact solution procedure for multi-item two-echelon spare parts inventory control problem with batch ordering in the central warehouse

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2010-09-01
Topan, Engin
Bayındır, Zeynep Pelin
Tan, Tarkan
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.