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98%-Effective Lot-Sizing for One-Warehouse, Multi-Retailer Inventory Systems with Backlogging

Author

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  • Joseph S. B. Mitchell

    (Cornell University, Ithaca, New York)

Abstract

Robin Roundy has analyzed a stationary, one-warehouse, N -retailer inventory system that permits no shortages or backlogging, that has a constant demand rate per unit time at each retailer, and that incurs setup and unit storage costs at each facility. By reducing the problem with backlogging to an equivalent problem with no backlogging, we extend Roundy's results to permit backlogging. This approach permits us to use Roundy's results to find a 98%-effective policy for the backlogging problem in O ( N log N ) time.

Suggested Citation

  • Joseph S. B. Mitchell, 1987. "98%-Effective Lot-Sizing for One-Warehouse, Multi-Retailer Inventory Systems with Backlogging," Operations Research, INFORMS, vol. 35(3), pages 399-404, June.
    • Handle: RePEc:inm:oropre:v:35:y:1987:i:3:p:399-404
    DOI: 10.1287/opre.35.3.399
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    Cited by:

    1. Abdul-Jalbar, Beatriz & Gutiérrez, José M. & Sicilia, Joaquín, 2009. "A two-echelon inventory/distribution system with power demand pattern and backorders," International Journal of Production Economics, Elsevier, vol. 122(2), pages 519-524, December.
    2. Julien Bramel & Shobhna Goyal & Paul Zipkin, 2000. "Coordination of Production/Distribution Networks with Unbalanced Leadtimes," Operations Research, INFORMS, vol. 48(4), pages 570-577, August.
    3. Shiman Ding & Philip M. Kaminsky, 2020. "Centralized and Decentralized Warehouse Logistics Collaboration," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 812-831, July.
    4. Fangruo Chen, 1999. "94%-Effective Policies for a Two-Stage Serial Inventory System with Stochastic Demand," Management Science, INFORMS, vol. 45(12), pages 1679-1696, December.
    5. Fangruo Chen, 1998. "Stationary Policies in Multiechelon Inventory Systems with Deterministic Demand and Backlogging," Operations Research, INFORMS, vol. 46(3-supplem), pages 26-34, June.

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