Approximate evaluation of continuous review ( R , Q ) policies in two-echelon inventory systems with stochastic transportation times

Abdullah S. Karaman

Kybernetika (2017)

  • Volume: 53, Issue: 3, page 461-479
  • ISSN: 0023-5954

Abstract

top
This paper considers a distribution inventory system that consists of a single warehouse and several retailers. Customer demand arrives at the retailers according to a continuous-time renewal process. Material flow between echelons is driven by reorder point/order quantity inventory control policies. Our objective in this setting is to calculate the long-run inventory, backorder and customer service levels. The challenge in this system is to characterize the demand arrival process at the warehouse. We present a Markovian methodology to elucidate and approximate this process. We illustrate the use of this methodology in the distribution inventory system under stochastic transportation times with identical and non-identical retailers.

How to cite

top

Karaman, Abdullah S.. "Approximate evaluation of continuous review $(R,Q)$ policies in two-echelon inventory systems with stochastic transportation times." Kybernetika 53.3 (2017): 461-479. <http://eudml.org/doc/294684>.

@article{Karaman2017,
abstract = {This paper considers a distribution inventory system that consists of a single warehouse and several retailers. Customer demand arrives at the retailers according to a continuous-time renewal process. Material flow between echelons is driven by reorder point/order quantity inventory control policies. Our objective in this setting is to calculate the long-run inventory, backorder and customer service levels. The challenge in this system is to characterize the demand arrival process at the warehouse. We present a Markovian methodology to elucidate and approximate this process. We illustrate the use of this methodology in the distribution inventory system under stochastic transportation times with identical and non-identical retailers.},
author = {Karaman, Abdullah S.},
journal = {Kybernetika},
keywords = {inventory control; Markovian analysis; stochastic lead-times; distribution inventory systems},
language = {eng},
number = {3},
pages = {461-479},
publisher = {Institute of Information Theory and Automation AS CR},
title = {Approximate evaluation of continuous review $(R,Q)$ policies in two-echelon inventory systems with stochastic transportation times},
url = {http://eudml.org/doc/294684},
volume = {53},
year = {2017},
}

TY - JOUR
AU - Karaman, Abdullah S.
TI - Approximate evaluation of continuous review $(R,Q)$ policies in two-echelon inventory systems with stochastic transportation times
JO - Kybernetika
PY - 2017
PB - Institute of Information Theory and Automation AS CR
VL - 53
IS - 3
SP - 461
EP - 479
AB - This paper considers a distribution inventory system that consists of a single warehouse and several retailers. Customer demand arrives at the retailers according to a continuous-time renewal process. Material flow between echelons is driven by reorder point/order quantity inventory control policies. Our objective in this setting is to calculate the long-run inventory, backorder and customer service levels. The challenge in this system is to characterize the demand arrival process at the warehouse. We present a Markovian methodology to elucidate and approximate this process. We illustrate the use of this methodology in the distribution inventory system under stochastic transportation times with identical and non-identical retailers.
LA - eng
KW - inventory control; Markovian analysis; stochastic lead-times; distribution inventory systems
UR - http://eudml.org/doc/294684
ER -

References

top
  1. Albin, S. L., 10.1287/opre.32.5.1133, Oper. Res. 32 (1984), 5, 1133-1162. MR0770513DOI10.1287/opre.32.5.1133
  2. Altiok, T., 10.1007/978-1-4612-1924-8, Springer Series in Operations Research and Financial Engineering. Springer, New York 1997. DOI10.1007/978-1-4612-1924-8
  3. Axsäter, S., 10.1287/opre.38.1.64, Oper. Res. 38 (1990), 1, 64-69. DOI10.1287/opre.38.1.64
  4. Axsäter, S., 10.1287/opre.41.4.777, Oper. Res. 41 (1993), 4, 777-785. DOI10.1287/opre.41.4.777
  5. Axsäter, S., 10.1287/opre.48.5.686.12403, Oper. Res. 48 (2000), 5, 686-696. MR1792775DOI10.1287/opre.48.5.686.12403
  6. Axsäter, S., 10.1016/s0925-5273(02)00270-0, Int. J. Product. Econom. 81 (2003), 545-553. DOI10.1016/s0925-5273(02)00270-0
  7. Axsäter, S., Marklund, J., 10.1287/opre.1080.0560, Oper. Res. 56 (2008), 4, 976-991. MR2454108DOI10.1287/opre.1080.0560
  8. Balcıoğlu, B., Jagerman, D. L., Altiok, T., 10.1080/07408170701275343, IIE Trans. 39 (2007), 10, 985-996. DOI10.1080/07408170701275343
  9. Beamon, B. M., 10.1016/s0925-5273(98)00079-6, Int. J. Product. Econom. 55 (1998), 3, 281-294. DOI10.1016/s0925-5273(98)00079-6
  10. Benjaafar, S., Cooper, W. L., Kim, J.-S., 10.1287/mnsc.1040.0303, Management Sci. 54 (2005), 548-565. DOI10.1287/mnsc.1040.0303
  11. Bitran, G. R., Dasu, S., 10.1287/opre.41.5.903, Oper. Res. 41 (1993), 5, 903-923. DOI10.1287/opre.41.5.903
  12. Bitran, G. R., Dasu, S., 10.1287/opre.42.1.158, Oper. Res. 42 (1994), 1, 158-174. MR1261375DOI10.1287/opre.42.1.158
  13. Buzacott, J. A., Kostelski, D., 10.1080/07408178708975416, IIE Trans. 19 (1987), 4, 429-438. DOI10.1080/07408178708975416
  14. Cachon, G. P., 10.1287/opre.49.1.79.11188, Oper. Res. 49 (2001), 1, 79-98. MR1814611DOI10.1287/opre.49.1.79.11188
  15. Chen, F., Zheng, Y.-S., 10.1287/opre.45.2.275, Oper. Res. 45 (1997), 2, 275-287. DOI10.1287/opre.45.2.275
  16. Chew, E. P., Tang, L. C., 10.1016/0377-2217(93)e0279-7, Europ. J. Oper. Res. 82 (1995), 1, 98-110. DOI10.1016/0377-2217(93)e0279-7
  17. Deuermeyer, B. L, Schwarz, L. B., A model for the analysis of system service level in warehouse-retailer distribution systems: The identical retailer case., Institute for Research in the Behavioral, Economic, and Management Sciences, Krannert Graduate School of Management, Purdue University, 1979. 
  18. Diks, E. B., Kok, A. G. de, Lagodimos, A. G., 10.1016/s0377-2217(96)00120-8, Europ. J. Oper. Res. 95 (1996), 2, 241-263. DOI10.1016/s0377-2217(96)00120-8
  19. Erenguc, S. S., Simpson, N. C., Vakharia, A. J., 10.1016/s0377-2217(98)90299-5, Europ. J. Oper. Res. 115 (1999), 2, 219-236. DOI10.1016/s0377-2217(98)90299-5
  20. Eruguz, A. S., Sahin, E., Jemai, Z., Dallery, Y., 10.1016/j.ijpe.2015.11.017, Int. J. Product. Econom. 172 (2016), 110-125. DOI10.1016/j.ijpe.2015.11.017
  21. Forsberg, R., 10.1016/s0377-2217(96)00137-3, Europ. J. Oper. Res. 96 (1997), 1, 130-138. DOI10.1016/s0377-2217(96)00137-3
  22. Girish, M. K., Hu, J.-Q., 10.1016/s0377-2217(99)00174-5, Europ. J. Oper. Res. 124 (2000), 3, 447-467. MR1782301DOI10.1016/s0377-2217(99)00174-5
  23. Gurgur, C. Z., Altiok, T., 10.1023/b:anor.0000011187.52502.37, Ann. Oper. Res. 125 (2004), 1-4, 95-116. MR2052322DOI10.1023/b:anor.0000011187.52502.37
  24. Karaman, A., Altiok, T., Approximate Analysis of Batch Ordering Policies in Distribution Inventory Systems., Technical Report TR-2007-050, Rutgers University, Department of Industrial and Systems Engineering, 2007. 
  25. Karaman, A., Altiok, T., 10.1016/j.ejor.2007.10.018, Europ. J. Oper. Res. 193 (2009), 1, 222-237. DOI10.1016/j.ejor.2007.10.018
  26. Karaman, A. S., Performance Analysis and Design of Batch Ordering Policies in Supply Chains., PhD Thesis, Rutgers, The State University of New Jersey, 2007. 
  27. Lucantoni, D. M., 10.1080/15326349108807174, Commun. Statist. Stoch. Models 7 (1991), 1, 1-46. MR1102528DOI10.1080/15326349108807174
  28. Moinzadeh, K., Lee, H. L., 10.1287/mnsc.32.12.1567, Management Sci. 32 (1986), 12, 1567-1581. DOI10.1287/mnsc.32.12.1567
  29. Neuts, M. F., Matrix-Geometric Solutions in Stochastic Models: An Algorithmic Approach., Dover Publications, 1994. MR1313503
  30. Norros, I., Roberts, J. W., Simonian, A., Virtamo, J. T., 10.1109/49.76636, IEEE J. Selected Areas Commun. 9 (1991), 3, 378-387. DOI10.1109/49.76636
  31. Osogami, T., Harchol-Balter, M., 10.1007/978-3-540-45232-4_13, In: Computer Performance Evaluation. Modelling Techniques and Tools (P. Kemper and W. H. Sanders, eds.), Lecture Notes in Computer Science 2794, pp. 200-217. Springer Berlin Heidelberg, 2003. DOI10.1007/978-3-540-45232-4_13
  32. Schwarz, L. B., Deuermeyer, B. L., Badinelli, R. D., 10.1287/mnsc.31.4.488, Management Sci. 31 (1985), 5, 488-498. MR0788081DOI10.1287/mnsc.31.4.488
  33. Sherbrooke, C. C., 10.1287/opre.16.1.122, Operr. Res. 16 (1968), 1, 122-141. DOI10.1287/opre.16.1.122
  34. Svoronos, A., Zipkin, P., 10.1287/opre.36.1.57, Oper. Res. 36(1988), 57-72. DOI10.1287/opre.36.1.57
  35. Svoronos, A., Zipkin, P., 10.1287/mnsc.37.1.68, Management Sci. 37 (1991), 1, 68-83. DOI10.1287/mnsc.37.1.68
  36. Tempelmeier, H., 10.1080/00207543.2013.776190, Int. J. Product. Res. 51 (2013), 23-24, 6880-6890. DOI10.1080/00207543.2013.776190
  37. Vuuren, M. van, Adan, I. J. B. F., 10.1080/15326340600820398, Stoch. Models 22 (2006), 3, 423-440. MR2247591DOI10.1080/15326340600820398
  38. Whitt, W., 10.1287/opre.30.1.125, Oper. Res. 30 (1982), 1, 125-147. MR0647405DOI10.1287/opre.30.1.125
  39. Zipkin, P., 10.1002/1520-6750(198804)35:2<247::aid-nav3220350209>3.0.co;2-l, Naval Res. Logistics 35 (1988), 2, 247-257. MR0930967DOI10.1002/1520-6750(198804)35:2<247::aid-nav3220350209>3.0.co;2-l

NotesEmbed ?

top

You must be logged in to post comments.

To embed these notes on your page include the following JavaScript code on your page where you want the notes to appear.

Only the controls for the widget will be shown in your chosen language. Notes will be shown in their authored language.

Tells the widget how many notes to show per page. You can cycle through additional notes using the next and previous controls.

    
                

                
Note: Best practice suggests putting the JavaScript code just before the closing </body> tag.