Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7427712 | Transportation Research Part E: Logistics and Transportation Review | 2018 | 20 Pages |
Abstract
Academic research on (s,S) inventory policies for multi-echelon distribution networks with deterministic lead times, backordering, and fill rate constraints is limited. Inspired by a real-life Dutch food retail case we develop a simulation-optimization approach to optimize (s,S) inventory policies in such a setting. We compare the performance of a Nested Bisection Search (NBS) and a novel Scatter Search (SS) metaheuristic using 1280 instances from literature and we derive managerial implications from a real-life case. Results show that the SS outperforms the NBS on solution quality. Additionally, supply chain costs can be saved by allowing lower fill rates at upstream echelons.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Marije Noordhoek, Wout Dullaert, David S.W. Lai, Sander de Leeuw,