An efficient algorithm for a generalized joint replenishment problem

Hans Frenk, Marcel Kleijn and Rommert Dekker

No EI 9701-/A, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: In most multi-item inventory systems, the ordering costs consist of a major cost and a minor cost for each item included. Applying for every individual item a cyclic inventory policy, where the cycle length is a multiple of some basic cycle time, reduces the major ordering costs. An efficient algorithm to determine the optimal policy of this type is discussed in this paper. It is shown that this algorithm can be used for deterministic multi-item inventory problems, with general cost rate functions and possibly service level constraints, of which the well-known joint replenishment problem is a special case. Some useful results in determining the optimal control parameters are derived, and worked out for piecewise linear cost rate functions. Numerical results for this case show that the algorithm significantly outperforms other solution methods, both in the quality of the solution as in the running time.

Keywords: deterministic demand; inventory; joint replenishment problem; multi-item (search for similar items in EconPapers)
Date: 1997-01-01
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: An efficient algorithm for a generalized joint replenishment problem (1999)
Working Paper: An Efficient Algorithm for a Generalized Joint Replenishment Problem (1997)
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