A joint replenishment policy with individual control and constant size orders

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dc.citation.epage4271en_US
dc.citation.issueNumber14en_US
dc.citation.spage4253en_US
dc.citation.volumeNumber48en_US
dc.contributor.authorTanrikulu, M. M.en_US
dc.contributor.authorŞen, A.en_US
dc.contributor.authorAlp, O.en_US
dc.date.accessioned2016-02-08T10:00:35Z
dc.date.available2016-02-08T10:00:35Z
dc.date.issued2010en_US
dc.departmentDepartment of Industrial Engineeringen_US
dc.description.abstractWe consider inventory systems with multiple items under stochastic demand and jointly incurred order setup costs. The problem is to determine the replenishment policy that minimises the total expected ordering, inventory holding, and backordering costs-the so-called stochastic joint replenishment problem. In particular, we study the settings in which order setup costs reflect the transportation costs and have a step-wise cost structure, each step corresponding to an additional transportation vehicle. For this setting, we propose a new policy that we call the (s, Q) policy, under which a replenishment order of constant size Q is triggered whenever the inventory position of one of the items drops to its reorder point s. The replenishment order is allocated to multiple items so that the inventory positions are equalised as much as possible. The policy is designed for settings in which backorder and setup costs are high, as it allows the items to independently trigger replenishment orders and fully exploits the economies of scale by consistently ordering the same quantity. A numerical study is conducted to show that the proposed (s, Q) policy outperforms the well-known (Q, S) policy when backorder costs are high and lead times are small.en_US
dc.identifier.doi10.1080/00207540802662904en_US
dc.identifier.eissn1366-588X
dc.identifier.issn0020-7543
dc.identifier.urihttp://hdl.handle.net/11693/22473
dc.language.isoEnglishen_US
dc.publisherTaylor & Francisen_US
dc.relation.isversionofhttp://dx.doi.org/10.1080/00207540802662904en_US
dc.source.titleInternational Journal of Production Researchen_US
dc.subjectReplenishment policyen_US
dc.subjectInventory systemsen_US
dc.subjectStochastic joint replenishment problemen_US
dc.titleA joint replenishment policy with individual control and constant size ordersen_US
dc.typeArticleen_US

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