Fast Approximation Algorithms for the One-Warehouse Multi-Retailer Problem Under General Cost Structures and Capacity Constraints

Jean-Philippe Gayon (), Guillaume Massonnet (), Christophe Rapine () and Gautier Stauffer ()
Additional contact information
Jean-Philippe Gayon: University Grenoble Alpes, CNRS, G-SCOP, 38000 Grenoble, France
Guillaume Massonnet: Laboratoire LS2N, IMT-Atlantique, 44300 Nantes, France
Christophe Rapine: Université de Lorraine, laboratoire LGIPM, Île du Saulcy, 57045 Metz Cedex 01, France
Gautier Stauffer: University Grenoble Alpes, CNRS, G-SCOP, 38000 Grenoble, France

Mathematics of Operations Research, 2017, vol. 42, issue 3, 854-875

Abstract: We consider a well-studied multi-echelon (deterministic) inventory control problem, known in the literature as the one-warehouse multi-retailer (OWMR) problem. We propose a simple and fast 2-approximation algorithm for this NP-hard problem, by recombining the solutions of single-echelon relaxations at the warehouse and at the retailers. We then show that our approach remains valid under quite general assumptions on the cost structures and under capacity constraints at some retailers. In particular, we present the first approximation algorithms for the OWMR problem with nonlinear holding costs, truckload discount on procurement costs, or with capacity constraints at some retailers. In all cases, the procedure is purely combinatorial and can be implemented to run in low polynomial time.

Keywords: approximation algorithms; combinatorial algorithm; ulti-echelon inventory problem; lot sizing (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1287/moor.2016.0830 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormoor:v:42:y:2017:i:3:p:854-875

Access Statistics for this article

More articles in Mathematics of Operations Research from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().