The Stochastic joint replenishment problem: A new policy, analysis, and insights

Creative Commons License

Oezkaya B., Guerler U., Berk E.

NAVAL RESEARCH LOGISTICS, cilt.53, sa.6, ss.525-546, 2006 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 53 Sayı: 6
  • Basım Tarihi: 2006
  • Doi Numarası: 10.1002/nav.20147
  • Dergi Adı: NAVAL RESEARCH LOGISTICS
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Sayfa Sayıları: ss.525-546
  • Anahtar Kelimeler: multi-item inventory systems, joint replenishment problem, CAN-ORDER POLICIES, INVENTORY SYSTEMS, PERISHABLE INVENTORY, DEMAND, COST
  • Hacettepe Üniversitesi Adresli: Evet

Özet

In this study, we propose a new parsimonious policy for the stochastic joint replenishment problem in a single-location. N-item setting. The replenishment decisions are based on both group reorder point-group order quantity and the time since the last decision epoch. We derive the expressions for the key operating characteristics of the inventory system for both unit and compound Poisson demands. In a comprehensive numerical study, we compare the performance of the proposed policy with that of existing ones over a standard test bed. Our numerical results indicate that the proposed policy dominates the existing ones in 100 of 139 instances with comparably significant savings for unit demands. With batch demands, the savings increase as the stochasticity of demand size gets larger. We also observe that it performs well in environments with low demand diversity across items. The inventory system herein also models a two-echelon setting with a single item, multiple retailers, and cross docking at the upper echelon. (C) 2006 Wiley Periodicals, Inc.