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A priori error bounds for procurement commodity aggregation in logistics planning models

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  • A. M. Geoffrion

Abstract

A complete logistical planning model of a firm or public system should include activities having to do with the procurement of supplies. Not infrequently, however, procurement aspects are difficult to model because of their relatively complex and evanescent nature. This raises the issue of how to build an overall logistics model in spite of such difficulties. This paper offers some suggestions toward this end which enable the procurement side of a model to be simplified via commodity aggregation in a “controlled” way, that is, in such a manner that the modeler can know and control in advance of solving his model how much loss of accuracy will be incurred for the solutions to the (aggregated) overall model.

Suggested Citation

  • A. M. Geoffrion, 1977. "A priori error bounds for procurement commodity aggregation in logistics planning models," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 24(2), pages 201-212, June.
    • Handle: RePEc:wly:navlog:v:24:y:1977:i:2:p:201-212
    DOI: 10.1002/nav.3800240202
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    1. Knolmayer, Gerhard, 1981. "A simulation study of simplification strategies in the development of optimization models," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 96, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.

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