Stock Allocation in a Two-Echelon Distribution System Or "What to Do Until Your Ship Comes In"

Peter L. Jackson
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Peter L. Jackson: School of Operations Research and Industrial Engineering, College of Engineering, Cornell University, Ithaca, New York 14853

Management Science, 1988, vol. 34, issue 7, 880-895

Abstract: In this paper, we focus on a single order cycle of a warehouse, serving N retailers where the only shipments allowed during the cycle are from the warehouse to the retailers. For a simple ship-up-to-S allocation policy, we develop both the exact cost model and a computationally tractable approximate cost model for the case of identical retailers, and demonstrate empirically the benefits of centralizing at least a portion of the total system stock.

Keywords: inventory/production; approximations; multi-echelon; issuing policies; simulations (search for similar items in EconPapers)
Date: 1988
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:34:y:1988:i:7:p:880-895

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