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An integrated model for warehouse and inventory planning

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  • Strack, Géraldine
  • Pochet, Yves

Abstract

The purpose of this article is to evaluate the value of integrating tactical warehouse and inventory decisions. Therefore, a global warehouse and inventory model is presented and solved. In order to solve this mathematical model, two solution methodologies are developed which offer different level of integration of warehouse and inventory decisions. Computational tests are performed on a real world database using multiple scenarios differing by the warehouse capacity limits and the warehouse and inventory costs. Our observation is that the total cost of the inventory and warehouse systems can be reduced drastically by taking into account the warehouse capacity restrictions in the inventory planning decisions, in an aggregate way. Moreover additional inventory and warehouse savings can be achieved by using more sophisticated integration methods for inventory and warehouse decisions.

Suggested Citation

  • Strack, Géraldine & Pochet, Yves, 2010. "An integrated model for warehouse and inventory planning," European Journal of Operational Research, Elsevier, vol. 204(1), pages 35-50, July.
    • Handle: RePEc:eee:ejores:v:204:y:2010:i:1:p:35-50
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    References listed on IDEAS

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    1. van den Berg, Jeroen P. & Sharp, Gunter P. & Gademann, A. J. R. M. (Noud) & Pochet, Yves, 1998. "Forward-reserve allocation in a warehouse with unit-load replenishments," European Journal of Operational Research, Elsevier, vol. 111(1), pages 98-113, November.
    2. Rouwenhorst, B. & Reuter, B. & Stockrahm, V. & van Houtum, G. J. & Mantel, R. J. & Zijm, W. H. M., 2000. "Warehouse design and control: Framework and literature review," European Journal of Operational Research, Elsevier, vol. 122(3), pages 515-533, May.
    3. Vidal, Carlos J. & Goetschalckx, Marc, 2001. "A global supply chain model with transfer pricing and transportation cost allocation," European Journal of Operational Research, Elsevier, vol. 129(1), pages 134-158, February.
    4. Berg, J. P. van den & Zijm, W. H. M., 1999. "Models for warehouse management: Classification and examples," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 519-528, March.
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    Cited by:

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    2. STRACK, Géraldine & FORTZ, Bernard & RIANE, Fouad & VAN VYVE, Mathieu, 2011. "Comparison of heuristic procedures for an integrated model for production and distribution planning in an environment of shared resources," LIDAM Discussion Papers CORE 2011016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. van der Gaast, Jelmer Pier & Weidinger, Felix, 2022. "A deep learning approach for the selection of an order picking system," European Journal of Operational Research, Elsevier, vol. 302(2), pages 530-543.
    4. Nazanin Esmaili & Bryan A. Norman & Jayant Rajgopal, 2019. "Exact analysis of (R, s, S) inventory control systems with lost sales and zero lead time," Naval Research Logistics (NRL), John Wiley & Sons, vol. 66(2), pages 123-132, March.

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