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  • 1.
    Abdul-Jalbar, Beatriz
    et al.
    Universidad de La Laguna.
    Segerstedt, Anders
    Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Business Administration and Industrial Engineering.
    Sicilia, Joaquín
    Universidad de La Laguna.
    Nilsson, Andreas
    A new heuristic to solve the one-warehouse N-retailer problem2010In: Computers & Operations Research, ISSN 0305-0548, E-ISSN 1873-765X, Vol. 37, no 2, p. 265-272Article in journal (Refereed)
    Abstract [en]

    We deal with a multi-echelon inventory system in which one warehouse supplies an item to multiple retailers. Customer demand arrives at each retailer at a constant rate. The retailers replenish their inventories from the warehouse that in turn orders from an outside supplier. It is assumed that shortages are not allowed and lead times are negligible. The goal is to determine replenishment policies that minimize the overall cost in the system. We develop a heuristic to compute efficient policies, which also can easily be used in a spreadsheet application. The main idea consists of finding a balance between the replenishment and the inventory holding costs at each installation. This new heuristic we compare with two other approaches proposed in the literature; the computational studies show that in most of the instances generated the new method provides lower costs.

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