The Guaranteed Service Model (GSM) computes optimal order-points in multiechelon inventory control under the assumptions that delivery times can be guaranteed and the demand is bounded. Our new Stochastic Guaranteed Service Model (SGSM) with Recourse covers also scenarios that violate these assumptions. Simulation experiments on real-world data of a large German car manufacturer show that polic...

In 1998, the retail sales and marketing division of Time Inc., the largest publisher of consumer magazines in the US, reviewed its newsstand distribution principles and procedures for its magazines. This review affected the three major distribution decisions: the evaluation of each magazine’s national print order, the wholesaler allotment procedure, and the store distribution process. For this ...

This paper studies a periodic-review, serial inventory system in which echelon r nQ T policies are implemented. Under such a policy, each stage reviews its inventory in every T period and orders according to an echelon r nQ policy. Two types of fixed costs are considered: one is associated with each order batch Q, and the other is incurred for each inventory review. The objective is to find the...

Abstract: Inventory control systems development is one of the most appealing issues of the supply chain management which have recently been studied by academicians and practitioners. In this paper, an inventory management framework and deterministic cost models within the context of this framework are structured for effective supply chain (SC) in an agile environment. To do so, we propose a thr...

In this study, inventory planning in logistics networks of modular products is investigated in a multi-period and multi-echelon setting. It is shown that this optimization problem can be converted to another problem which is briefly called modular proportional flow problem. This later problem is a minimum cost network flow problem with side constraints. The whole network consists of several dis...

Freight transportation constitutes one of the main activities that influences economy and society, as it assures a vital link between suppliers and customers and is represents a major source of employment. Multi-echelon distribution is one of the most common strategies adopted by the transportation companies in an aim of cots reduction. Although vehicle routing problems are very common in opera...

Sloan School of Management and Operations Research Center, Massachusetts Institute of Technology, 77 Massachusetts Avenue, E40-147, Cambridge, MA 02139, USA Operations Research Center, Massachusetts Institute of Technology, 77 Massachusetts Avenue, E40-130, Cambridge, MA 02139, USA Department of Electrical Engineering and Computer Science, Massachusetts Institute of Technology, 77 Massachusetts...

Problem definition: We consider dual sourcing in a distribution network for spare parts consisting of one central warehouse and multiple local warehouses. Each keeps types repairable to maintain several capital goods. The repair shop at the has two options each part: regular option an expedited option. Irrespective option, part uses certain resource its repair. In design these inventory systems...

We consider the planning and scheduling of production in a multi-task/multi-stage batch manufacturing process typical of industries such as chemical manufacturing, food processing, and oil refining. We allow instances in which multiple sequences of tasks may be used to produce end products. We formulate the problem as a mixed integer linear program and show that the linear programming relaxatio...

In this paper, the two-echelon multi-period multi-product location–inventory problem with partial facility closing and reopening is studied. For each product period, plants serve warehouses, which consolidation hubs, service customers independent, normally distributed demands. The schedule of construction, temporary closing, modular capacities facilities, continuous-review inventory control pol...