IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v31y1985i11p1416-1430.html
   My bibliography  Save this article

98%-Effective Integer-Ratio Lot-Sizing for One-Warehouse Multi-Retailer Systems

Author

Listed:
  • Robin Roundy

    (School of Operations Research and Industrial Engineering, Cornell University, Ithaca, New York 14853)

Abstract

A warehouse supplies N retailers. Constant external demand occurs at each retailer, and shortages are not allowed. There are linear holding costs and fixed costs for ordering at the warehouse and at each retailer. The goal is to minimize the long-run average cost over an infinite time horizon. We define a new class of policies for this problem whose simple structure facilitates both computation and implementation. The cost of a policy that is optimal within this class is shown to be within 2% of the cost of an optimal policy for the original problem, in the worst case. Such a policy can be computed in O(N log N) time.

Suggested Citation

  • Robin Roundy, 1985. "98%-Effective Integer-Ratio Lot-Sizing for One-Warehouse Multi-Retailer Systems," Management Science, INFORMS, vol. 31(11), pages 1416-1430, November.
    • Handle: RePEc:inm:ormnsc:v:31:y:1985:i:11:p:1416-1430
    DOI: 10.1287/mnsc.31.11.1416
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.31.11.1416
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.31.11.1416?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:31:y:1985:i:11:p:1416-1430. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.