Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7427841 | Transportation Research Part E: Logistics and Transportation Review | 2018 | 12 Pages |
Abstract
This paper studies the effect of several inventory policies on the design of a distribution network for fast-moving items able to provide differentiated service levels in terms of product availability for several demand classes. We consider the distribution network design problem when the global round-up, single class allocation, local separate stock, local round-up, and critical level inventory policies are used. We show how to formulate these problems as conic quadratic mixed-integer problems and prove that the critical level policy provides the lowest cost distribution network design. Further results and a computational study show how these different models compare in practice.
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Authors
P. Escalona, V. Marianov, F. Ordóñez, R. Stegmaier,