Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9663731 | European Journal of Operational Research | 2005 | 19 Pages |
Abstract
We consider a joint replenishment problem where the product demands are auto-correlated but independent of each other. A dynamic periodic review policy is developed, and its parameters are determined by a heuristic which aims at minimizing the total inventory cost, which includes the holding cost, the set up cost and the shortage cost. The heuristic updates the review interval and the target inventory level of every product at each review point based on the current inventory status and the past demand data. A simulation model is developed to compare the performance of this proposed policy with an existing periodic review policy. The results show that the proposed policy has consistently achieved significant saving in all the different experimental scenarios.
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Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Loo Hay Lee, Ek Peng Chew,