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An inventory system with single distributor and multiple retailers: Operating scenarios and performance comparison

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  • Geng, Wei
  • Qiu, Minmin
  • Zhao, Xiaobo
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    Abstract

    We consider a single-distributor multi-retailer inventory system in six operating scenarios for a finite horizon. Five scenarios are in decentralized control and the other one is in centralized control. Approximate dynamic programming (ADP) procedures are developed to obtain system performances for scenarios in decentralized control, and a stochastic dynamic programming approach is applied to the scenario in centralized control. The efficiency and effectiveness of ADP procedures are demonstrated by numerical results. Taking the system performance in centralized control as a benchmark, system performances in decentralized control are investigated and compared for different operating scenarios. The results provide useful insights in system planning and operations.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 128 (2010)
    Issue (Month): 1 (November)
    Pages: 434-444

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    Handle: RePEc:eee:proeco:v:128:y:2010:i:1:p:434-444

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Inventory Operating scenario Performance Approximate dynamic programming;

    References

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    1. Lee, Dong Joo & Jeong, In-Jae, 2010. "A distributed coordination for a single warehouse-multiple retailer problem under private information," International Journal of Production Economics, Elsevier, vol. 125(1), pages 190-199, May.
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    16. Lode Li, 2002. "Information Sharing in a Supply Chain with Horizontal Competition," Yale School of Management Working Papers ysm288, Yale School of Management.
    17. Byrne, P.J. & Heavey, Cathal, 2006. "The impact of information sharing and forecasting in capacitated industrial supply chains: A case study," International Journal of Production Economics, Elsevier, vol. 103(1), pages 420-437, September.
    18. Abdul-Jalbar, Beatriz & Gutiérrez, José M. & Sicilia, Joaquín, 2009. "A two-echelon inventory/distribution system with power demand pattern and backorders," International Journal of Production Economics, Elsevier, vol. 122(2), pages 519-524, December.
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    Cited by:
    1. Duan, Qinglin & Warren Liao, T., 2013. "Optimization of replenishment policies for decentralized and centralized capacitated supply chains under various demands," International Journal of Production Economics, Elsevier, vol. 142(1), pages 194-204.
    2. Guerrero, W.J. & Yeung, T.G. & Guéret, C., 2013. "Joint-optimization of inventory policies on a multi-product multi-echelon pharmaceutical system with batching and ordering constraints," European Journal of Operational Research, Elsevier, vol. 231(1), pages 98-108.

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