Author
Solyalı, O., Süral, H., Denizel, Meltem
Publication Date
2010-10
Publication Place
-
Wiley
Subject
One-warehouse multiretailer problem, Order-up-to level inventory policy, Lot-sizing, Integer programming, Strong formulation
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1520-6750
Record ID
b64d28cf-4616-4bc9-a0ab-f315b73afa96
Library Location
Industrial Engineering
Date
2010-10
Notes
Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Sample Text
We consider a two-level system in which a warehouse manages the inventories of multiple retailers. Each retailer employs an order-up-to level inventory policy over T periods and faces an external demand which is dynamic and known. A retailer's inventory should be raised to its maximum limit when replenished. The problem is to jointly decide on replenishment times and quantities of warehouse and retailers so as to minimize the total costs in the system. Unlike the case in the single level lot-sizing problem, we cannot assume that the initial inventory will be zero without loss of generality. We propose a strong mixed integer program formulation for the problem with zero and nonzero initial inventories at the warehouse. The strong formulation for the zero initial inventory case has only T binary variables and represents the convex hull of the feasible region of the problem when there is only one retailer. Computational results with a state-of-the art solver reveal that our formulations are very effective in solving large-size instances to optimality.
DOI
10.1002/nav.20428
Cilt
57
