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A two-echelon inventory/distribution system with power demand pattern and backorders

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  • Abdul-Jalbar, Beatriz
  • Gutiérrez, José M.
  • Sicilia, Joaquín

Abstract

This paper addresses the implications of considering power demand pattern and backorders in the one-warehouse N-retailer problem. Specifically, we assume that items at the retailers are withdrawn from the inventory following a power pattern. The objective function consists of the sum of ordering, holding and backordering costs at all installations. This objective function depends on the class of inventory policies that we choose for the formulation of the problem. In general, obtaining the cost function is an arduous task since the average inventory at the warehouse could be difficult to determine. However, if we apply single-cycle policies the computation of the total average cost becomes possible. Under these assumptions we show that the one-warehouse N-retailer system with power demand pattern and backorders can be formulated as a mixed non linear programming problem.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:proeco:v:122:y:2009:i:2:p:519-524
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    Cited by:

    1. Geng, Wei & Qiu, Minmin & Zhao, Xiaobo, 2010. "An inventory system with single distributor and multiple retailers: Operating scenarios and performance comparison," International Journal of Production Economics, Elsevier, vol. 128(1), pages 434-444, November.
    2. Manzini, Riccardo, 2012. "A top-down approach and a decision support system for the design and management of logistic networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1185-1204.
    3. Beatriz Abdul-Jalbar & Roberto Dorta-Guerra & José M. Gutiérrez & Joaquín Sicilia, 2021. "Production/Inventory Policies for a Two-Echelon System with Credit Period Incentives," Mathematics, MDPI, vol. 9(15), pages 1-25, July.
    4. Sarkar, Biswajit & Sarkar, Sumon, 2013. "Variable deterioration and demand—An inventory model," Economic Modelling, Elsevier, vol. 31(C), pages 548-556.
    5. Carvajal, Jimmy & Castaño, Fabian & Sarache, William & Costa, Yasel, 2020. "Heuristic approaches for a two-echelon constrained joint replenishment and delivery problem," International Journal of Production Economics, Elsevier, vol. 220(C).

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