Article ID Journal Published Year Pages File Type
7427841 Transportation Research Part E: Logistics and Transportation Review 2018 12 Pages PDF
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.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
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