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A simple improvement on Silver's heuristic for the joint replenishment problem

Author

Listed:
  • A Nilsson

    (Luleå University of Technology)

  • E A Silver

    (University of Calgary)

Abstract

In this paper, we revisit the well-known joint replenishment problem. There is a family of items with a major fixed cost associated with any replenishment of the family and a minor, (item-dependent) setup cost for each item that is included in the replenishment. In contrast with optimization methods and sophisticated (iterative) heuristics that have been presented in the literature, we present a simple (including ease of understanding) improvement routine to be used in conjunction with the original, simple approach advocated by one of the authors 30 years ago. Tests on 48,000 examples reveal that the improvement routine does, indeed, substantially improve performance and with relatively little extra computational effort. Thus, it should be of particular interest to practitioners and for teaching materials.

Suggested Citation

  • A Nilsson & E A Silver, 2008. "A simple improvement on Silver's heuristic for the joint replenishment problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(10), pages 1415-1421, October.
    • Handle: RePEc:pal:jorsoc:v:59:y:2008:i:10:d:10.1057_palgrave.jors.2602446
    DOI: 10.1057/palgrave.jors.2602446
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    References listed on IDEAS

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    1. Edward A. Silver, 1976. "A Simple Method of Determining Order Quantities in Joint Replenishments Under Deterministic Demand," Management Science, INFORMS, vol. 22(12), pages 1351-1361, August.
    2. Wildeman, R.E. & Frenk, J.B.G. & Dekker, R., 1997. "An efficient optimal solution method for the joint replenishment problem," European Journal of Operational Research, Elsevier, vol. 99(2), pages 433-444, June.
    3. S. K. Goyal, 1973. "Determination of Economic Packaging Frequency for Items Jointly Replenished," Management Science, INFORMS, vol. 20(2), pages 232-235, October.
    4. S Viswanathan, 2002. "On optimal algorithms for the joint replenishment problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(11), pages 1286-1290, November.
    5. E A Silver, 2004. "An overview of heuristic solution methods," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(9), pages 936-956, September.
    6. S. K. Goyal, 1974. "Determination of Optimum Packaging Frequency of Items Jointly Replenished," Management Science, INFORMS, vol. 21(4), pages 436-443, December.
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