Paper Info
Title
Multi-item two-echelon spare parts inventory control problem with batch ordering in the central warehouse under compound Poisson demand.
Abstract
We consider a multi-item two-echelon spare part inventory system in which the central warehouse operates under an (nQ, R) policy and the local warehouses implement order-up-to S policy, each facing a compound Poisson demand. The objective is to find the policy parameters minimizing expected system-wide inventory holding and fixed ordering costs subject to an aggregate mean response time constraint at each warehouse. In this paper, we propose four alternative approximations for the steady state performance of the system; and extend a heuristic and a lower bound proposed under Poisson demand assumption to the compound Poisson setting. In a computational study, we show that the performances of the approximations, the heuristic, and the lower bound are quite satisfactory; and the relative cost saving of setting an aggregate service level rather than individually for each part is quite high. Journal of the Operational Research Society (2012) 63, 1143-1152. doi: 10.1057/jors.2011.125 Published online 30 November 2011
Year
DOI
Venue
2012
10.1057/jors.2011.125
JORS
Keywords
Field
DocType
service level,inventory control,spare parts,lower bound,steady state
Heuristic,Service level,Spare part,Upper and lower bounds,Computer science,Scheduling (computing),Operations research,Heuristics,Poisson distribution,Time constraint,Operations management
Journal
Volume
Issue
ISSN
63
8
0160-5682
Citations 
PageRank 
References 
3
0.42
7
Authors
2
Name
Order
Citations
PageRank
Engin Topan1151.77
Z. Pelin Bayindir2334.19