Computing Nested Reorder Intervals for Multi-Item Distribution Systems

Robin O. Roundy
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Robin O. Roundy: Cornell University, Ithaca, New York

Operations Research, 1990, vol. 38, issue 1, 37-52

Abstract: We consider a multistage, multi-item distribution system in which each of a number of items is stocked at each of a number of locations. The cost of placing an order at a location depends on the set of items ordered there. Demand for the items is constant, and there is a linear holding cost for each item at each location. Only nested policies are considered. A known heuristic is guaranteed to find a policy that is within 2% of optimal. However, if there are M items and L locations the running time of the heuristic is O ( M 4 L 4 ). We improve the running time to O ( MLD log( ML )) where D is at most the maximum of the depth of the location and family arborescences.

Keywords: production/inventory: heuristics; multi-item multistage; deterministic approximations (search for similar items in EconPapers)
Date: 1990
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