IDEAS home Printed from https://ideas.repec.org/a/taf/uiiexx/v42y2010i11p812-824.html
   My bibliography  Save this article

A centralized ordering and allocation system with backorders and strategic lost sales

Author

Listed:
  • Yanyi Xu
  • Arnab Bisi
  • Maqbool Dada

Abstract

This article considers a multi-retailer distribution system that is managed by a central decision maker who, at the start of each period, determines how much to order to replenish the system stock. The decision maker also determines how to allocate incoming pipeline inventory to maintain inventory balance among the retailers. It has been noted in the literature that balancing inventories can equalize service levels among retailers. To improve the efficacy of the allocation, this article allows some demand to be rejected to keep inventories in balance. Consequently, depending on the realized pattern of demand during the delivery lead time, the inventory is dynamically allocated to each of the retailers. For the model with two retailers, an exact representation of the infinite-horizon long-run average cost function is developed. This exact expression is used to develop conditions for the unique solution for the two-retailer case. The presented analysis holds for a wide class of continuously and discretely distributed demand.

Suggested Citation

  • Yanyi Xu & Arnab Bisi & Maqbool Dada, 2010. "A centralized ordering and allocation system with backorders and strategic lost sales," IISE Transactions, Taylor & Francis Journals, vol. 42(11), pages 812-824.
    • Handle: RePEc:taf:uiiexx:v:42:y:2010:i:11:p:812-824
    DOI: 10.1080/0740817X.2010.491499
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0740817X.2010.491499
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0740817X.2010.491499?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Yanyi Xu & Arnab Bisi & Maqbool Dada, 2011. "A Periodic-Review Base-Stock Inventory System with Sales Rejection," Operations Research, INFORMS, vol. 59(3), pages 742-753, June.
    2. Protopappa-Sieke, Margarita & Sieke, Marcel A. & Thonemann, Ulrich W., 2016. "Optimal two-period inventory allocation under multiple service level contracts," European Journal of Operational Research, Elsevier, vol. 252(1), pages 145-155.

    More about this item

    Statistics

    Access and download statistics

    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:taf:uiiexx:v:42:y:2010:i:11:p:812-824. 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 Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/uiie .

    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.