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Strategic placement of telemetry units considering customer usage correlation

Author

Listed:
  • Amit Verma

    (Missouri Western State University)

  • Ann Melissa Campbell

    (University of Iowa)

Abstract

Telemetry units relay customer inventory levels to the supplier. This information can be used to create good estimates of future delivery dates, which is useful for route planning. Incorporating customer usage rate correlation can help with better planning for customers without telemetry units, but who are correlated with ones that have telemetry. We study a variant of the Telemetry Location Problem that exploits the correlation in customer demand to choose which customers should have telemetry units to minimize routing costs while preserving a given customer service level for all customers. To the best of our knowledge, this problem has not been previously addressed in the literature. We present a model and new algorithm for this problem. We perform computational experiments and provide insights regarding when consideration of correlation is particularly useful.

Suggested Citation

  • Amit Verma & Ann Melissa Campbell, 2019. "Strategic placement of telemetry units considering customer usage correlation," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(1), pages 35-64, March.
    • Handle: RePEc:spr:eurjtl:v:8:y:2019:i:1:d:10.1007_s13676-017-0104-9
    DOI: 10.1007/s13676-017-0104-9
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    References listed on IDEAS

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