IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v33y1987i12p1613-1621.html
   My bibliography  Save this article

Multi-Item, One-Warehouse, Multi-Retailer Distribution Systems

Author

Listed:
  • John A. Muckstadt

    (School of Operations Research and Industrial Engineering, Cornell University, Ithaca, New York 14853)

  • Robin O. Roundy

    (School of Operations Research and Industrial Engineering, Cornell University, Ithaca, New York 14853)

Abstract

In this paper we study the problem of coordinating the purchase and shipment of I items in a one-warehouse, N-retailer inventory system. The model includes positive echelon holding costs, fixed costs for ordering and shipping each item, and a fixed joint item order cost at each retailer. Demand for each item at each retailer is assumed to occur at a constant and continuous rate. A mathematical model is developed based on these assumptions and the assumption that a stationary nested policy is followed. An efficient algorithm is presented based on the problem's structure that involves only sorting and runs in O(NI log NI) time. The cost of the policy computed is proven to be within 6% of the cost of an optimal nested policy. An example is presented to illustrate the problem structure and the proposed algorithm.

Suggested Citation

  • John A. Muckstadt & Robin O. Roundy, 1987. "Multi-Item, One-Warehouse, Multi-Retailer Distribution Systems," Management Science, INFORMS, vol. 33(12), pages 1613-1621, December.
    • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:12:p:1613-1621
    DOI: 10.1287/mnsc.33.12.1613
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.33.12.1613
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.33.12.1613?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eynan, Amit & Kropp, Dean H., 2007. "Effective and simple EOQ-like solutions for stochastic demand periodic review systems," European Journal of Operational Research, Elsevier, vol. 180(3), pages 1135-1143, August.
    2. Iara Ciurria-Infosino & Daniel Granot & Frieda Granot & Arthur F. Veinott, 2015. "Multicommodity Production Planning: Qualitative Analysis and Applications," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 589-607, October.
    3. 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.
    4. Erenguc, S. Selcuk & Simpson, N. C. & Vakharia, Asoo J., 1999. "Integrated production/distribution planning in supply chains: An invited review," European Journal of Operational Research, Elsevier, vol. 115(2), pages 219-236, June.
    5. Ali Diabat & Jean-Philippe Richard & Craig Codrington, 2013. "A Lagrangian relaxation approach to simultaneous strategic and tactical planning in supply chain design," Annals of Operations Research, Springer, vol. 203(1), pages 55-80, March.
    6. Shiman Ding & Philip M. Kaminsky, 2020. "Centralized and Decentralized Warehouse Logistics Collaboration," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 812-831, July.
    7. Qinan Wang, 2001. "Coordinating Independent Buyers in a Distribution System to Increase a Vendor's Profits," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 337-348, May.
    8. Tamar Cohen-Hillel & Liron Yedidsion, 2018. "The Periodic Joint Replenishment Problem Is Strongly 𝒩𝒫-Hard," Mathematics of Operations Research, INFORMS, vol. 43(4), pages 1269-1289, November.
    9. Wang, Qinan & Chay, Yiowmin & Wu, Zhang, 2011. "Streamlining inventory flows with time discounts to improve the profits of a decentralized supply chain," International Journal of Production Economics, Elsevier, vol. 132(2), pages 230-239, August.
    10. Yang, P. C. & Wee, H. M., 2002. "A single-vendor and multiple-buyers production-inventory policy for a deteriorating item," European Journal of Operational Research, Elsevier, vol. 143(3), pages 570-581, December.
    11. Adeinat, Hamza & Pazhani, Subramanian & Mendoza, Abraham & Ventura, Jose A., 2022. "Coordination of pricing and inventory replenishment decisions in a supply chain with multiple geographically dispersed retailers," International Journal of Production Economics, Elsevier, vol. 248(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:33:y:1987:i:12:p:1613-1621. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.