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The routed inventory pooling problem with three non-identical retailers

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  • Bouma, Harmen W.
  • Teunter, Ruud H.

Abstract

We consider a single period inventory problem with three non-identical retailers in which items can be pooled at a predetermined point in time. Since multiple items are often pooled with a single visit to each retailer, we use a predetermined (shortest) route for redistribution. We derive cost expressions for this routed pooling policy as well as for the no pooling and complete pooling policies, which serve as benchmarks. In a numerical investigation we analyze how much of the pooling benefits can be captured if the route for redistribution is fixed. Furthermore, we investigate how stock is distributed among retailers at the beginning of the period and we look into the influence of a retailer׳s size and position in the route on expected costs.

Suggested Citation

  • Bouma, Harmen W. & Teunter, Ruud H., 2014. "The routed inventory pooling problem with three non-identical retailers," International Journal of Production Economics, Elsevier, vol. 156(C), pages 223-234.
    • Handle: RePEc:eee:proeco:v:156:y:2014:i:c:p:223-234
    DOI: 10.1016/j.ijpe.2014.06.004
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    References listed on IDEAS

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    Cited by:

    1. Harmen W. Bouma & Ruud H. Teunter, 2016. "The routed inventory pooling problem with multiple lateral transshipments," International Journal of Production Research, Taylor & Francis Journals, vol. 54(12), pages 3523-3533, June.
    2. Çömez-Dolgan, Nagihan & Tanyeri, Başak, 2015. "Inventory performance with pooling: Evidence from mergers and acquisitions," International Journal of Production Economics, Elsevier, vol. 168(C), pages 331-339.
    3. Zhou, Zihan & Wang, Xinhui, 2023. "Replenishment and transshipment in periodic-review systems with a fixed order cost," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1240-1247.

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