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Computing Nested Reorder Intervals for Multi-Item Distribution Systems

Author

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  • Robin O. Roundy

    (Cornell University, Ithaca, New York)

Abstract

We consider a multistage, multi-item distribution system in which each of a number of items is stocked at each of a number of locations. The cost of placing an order at a location depends on the set of items ordered there. Demand for the items is constant, and there is a linear holding cost for each item at each location. Only nested policies are considered. A known heuristic is guaranteed to find a policy that is within 2% of optimal. However, if there are M items and L locations the running time of the heuristic is O ( M 4 L 4 ). We improve the running time to O ( MLD log( ML )) where D is at most the maximum of the depth of the location and family arborescences.

Suggested Citation

  • Robin O. Roundy, 1990. "Computing Nested Reorder Intervals for Multi-Item Distribution Systems," Operations Research, INFORMS, vol. 38(1), pages 37-52, February.
  • Handle: RePEc:inm:oropre:v:38:y:1990:i:1:p:37-52
    DOI: 10.1287/opre.38.1.37
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    Cited by:

    1. Dror, Moshe & Hartman, Bruce C. & Chang, Wei, 2012. "The cost allocation issue in joint replenishment," International Journal of Production Economics, Elsevier, vol. 135(1), pages 242-254.
    2. Moshe Dror & Bruce C. Hartman, 2007. "Shipment Consolidation: Who Pays for It and How Much?," Management Science, INFORMS, vol. 53(1), pages 78-87, January.
    3. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.
    4. M Dror & B C Hartman, 2011. "Survey of cooperative inventory games and extensions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 565-580, April.

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