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.
| Original language | English |
|---|---|
| Pages (from-to) | 294-310 |
| Journal | Production and Operations Management |
| Volume | 15 |
| Issue number | 2 |
| Publication status | Published - 2006 |
Subject classification (UKÄ)
- Transport Systems and Logistics
Free keywords
- Inventory control
- Coordination
- Studies
- Heuristic
- Supply chains