A two-echelon allocation model and the value of information under correlated forecasts and demands

1997-06-01
Gullu, R
In this article we explore the effects of incorporating forecasts explicitly in a two-echelon allocation model which consists of a central depot and several retailers. In particular, we investigate the possible benefits on the system costs and inventory levels. The depot does not hold any inventory and the demand is observed only at the retailers. Under a general correlated demand-forecast structure we obtain the approximate system-wide order-up-to level and the expected system cost. In order to assess the value of information provided by keeping track of the forecasts, we construct a comparable inventory system operating under a standard demand model. We demonstrate that the standard demand model results in higher order-up-to levels and higher system costs. (C) 1997 Elsevier Science B.V.
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH

Suggestions

On the value of information in dynamic production inventory problems under forecast evolution
Gullu, R (1996-03-01)
In this article we explore how total system costs and inventory positions are affected when forecasts are incorporated explicitly in production/inventory systems. We assume that forecasts for demand of a certain item are available in each period, and they evolve from one period to the next in accordance with an additive evolution model. In order to analyze the effects of the forecasts on the production/inventory system we compare the optimal ordering policy and the expected costs of the model that keeps for...
A tunable multi-band metamaterial design using micro-split SRR structures
EKMEKÇİ, Evren; TOPALLI, Kagan; Akın, Tayfun; Sayan, Gönül (2009-08-31)
This paper presents the results of a feasibility study for the design of multi-band tunable metamaterials based on the use of micro-split SRR (MSSRR) structures. In this study, we have designed and constructed a conventional split-ring resonator (SRR) unit cell (type A) and two modified SRR unit cells having the same design parameters except that they contain two (type B) or four (type C) additional micro-splits on the outer square ring, along the arm having the main split. Transmission characteristics of t...
A computer-supported methodology for requirements modelling in CIM for small and medium size enterprises: A demonstration in Apparel Industry
Hashemipour, M; Anlagan, O; Kayaligil, S (1997-01-01)
This paper discusses the first phase of a computer-assisted methodology for implementing CIM within small and medium enterprises. Some of the existing methodologies and tools were furnished by extra items to ease the process for small and medium size manufacturing companies. The methodology aims at using limited expertise, limited staff, and minimising cost. The existing analysis tools (i.e. DFDs, ELH, and tools in the GRAI methodology) were modified and a new tool was developed (PIFR) to shed light on the ...
A two-echelon inventory model with stock-dependent demand and variable holding cost for deteriorating items
Pervin, Magfura; null, null; Kumar Roy, Sankar; Wilhelm Weber, Gerhard (American Institute of Mathematical Sciences (AIMS), 2017)
In this study, we develop an inventory model for deteriorating items with stock dependent demand rate. Shortages are allowed to this model and when stock on hand is zero, then the retailer offers a price discount to customers who are willing to back-order their demands. Here, the supplier as well as the retailer adopt the trade credit policy for their customers in order to promote the market competition. The retailer can earn revenue and interest after the customer pays for the amount of purchasing cost to ...
A quality-based approach to estimating quantitative elasticities for differentiated products: an application to retail milk demand
Gülseven, Osman (2015-09-01)
This article introduces the Hedonic Metric (HM) approach as an original method to model the demand for differentiated products using qualitative attributes. Our approach is based on a two-stage estimation procedure that utilizes qualitative characteristics of products. First, we create an n-dimensional hedonic space based on the qualitative information available to consumers. Next, we allocate the differentiated products into this space and estimate the quantitative demand elasticities for these products us...
Citation Formats
R. Gullu, “A two-echelon allocation model and the value of information under correlated forecasts and demands,” EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, pp. 386–400, 1997, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/63661.