Single-vendor multi-buyer inventory coordination under private informationChu, Chi-Leung and V. Jorge Leon European Journal of Operational Research, 2008, vol. 191, issue 2, pages 485-503 Abstract: This paper considers the problem of coordinating a single-vendor multi-buyer inventory system when there are privacy restrictions in the information required to solve the problem. The objective function and cost parameters of each facility are regarded as private information that no other facilities in the system have access to. Moreover, each facility is responsible to specify its own replenishment policy. The objective is to minimize the total average setup/ordering and inventory-related cost. Solution methodologies under private and global information are developed to find two types of nested power-of-two stationary policies. The first policy assumes all the buyers must replenish simultaneously. The second policy is a more general case where the common replenishment assumption is relaxed. A simple form of information exchange is uncovered that allows the solution methodologies for private and global information yield the same results. The experimental results suggest that the performance of the proposed heuristics is comparable or better than an existing method. Downloads: (external link) Related works: Access Statistics for this article European Journal of Operational Research is edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati More articles in European Journal of Operational Research from Elsevier |
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