An Efficient Algorithm for a Generalized Joint Replenishment Problem

J.B.G. Frenk (), M.J. Kleijn and Rommert Dekker
Additional contact information
J.B.G. Frenk: Erasmus University Rotterdam
M.J. Kleijn: Erasmus University Rotterdam

No 97-026/4, Tinbergen Institute Discussion Papers from Tinbergen 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: Inventory; Multi-item; Joint replenishment problem; Deterministic demand (search for similar items in EconPapers)
Date: 1997-02-15
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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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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:19970026

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