 A vendor managed inventory model using continuous approximations for route length estimates and Markov chain modeling for cost estimatesChristian Larsen and Marcel Turkensteen International Journal of Production Economics, 2014, vol. 157, issue C, 120-132 Abstract: We consider a vendor who supplies goods to a set of geographically dispersed retailers and can monitor and control the inventory levels at the retailers. Such an arrangement is often called vendor managed inventory (VMI). The decisions in this set-up are the inventory levels at the warehouse and at the retailers and the routing along the retailers. Normally, the inventory levels at the vendor’s warehouse and at the retailers are established by modeling the problem as a joint replenishment problem (JRP). Such a model ignores the differences in distances, number of retailers visited, and vehicle loads that may occur, in particular when these retailers are served on joint delivery trips. Some approaches that take routing and inventory decisions into account jointly, but these are so complex that only relatively small instances can be solved. Keywords: Joint replenishment policies; Continuous approximation; Markov chain modeling (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:157:y:2014:i:c:p:120-132 DOI: 10.1016/j.ijpe.2014.08.001 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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