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A simple improvement on Silver's heuristic for the joint replenishment problem
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
University of Calgary.
2008 (English)In: Journal of the Operational Research Society, ISSN 0160-5682, E-ISSN 1476-9360, Vol. 59, no 10, p. 1415-1421Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2008. Vol. 59, no 10, p. 1415-1421
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Industrial Logistics
Identifiers
URN: urn:nbn:se:ltu:diva-5638DOI: 10.1057/palgrave.jors.2602446ISI: 000259198900013Scopus ID: 2-s2.0-51349119997Local ID: 3cafa2d0-676a-11dc-a0c3-000ea68e967bOAI: oai:DiVA.org:ltu-5638DiVA, id: diva2:978512
Note

Validerad; 2008; 20070920 (evan)

Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Nilsson, Andreas

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