Skip to main content
SpringerLink
Log in
Book cover

Quantitative Approaches to Distribution Logistics and Supply Chain Management pp 395–411Cite as

Approximations for the Waiting Time in (s,nQ)-Inventory Models for Different Types of Consolidation Policies

  • Conference paper

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 519))

Abstract

In many practical situations the coordination of transportation management and inventory management may lead to considerable cost reductions. Transportation management includes the application of different types of shipment consolidation policies. Shipment consolidation takes into account the logistics strategy of combining two or more shipment orders to optimize transportation. When the shipment consolidation policy changes, the shipment lead time changes as well and if the lead time changes, the inventory policy needs to be re-evaluated, since changing lead times affect customer service. In this paper the lead time comprises two elements: waiting time due to order consolidation and the shipment time. The lead time is an important parameter for inventory management. We derive approximations for the lead time behaviour in (s,nQ) models where the items are consolidated according to different types of consolidation policies.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Doob, J.L. (1953) Stochastic processes. Wiley London

    Google Scholar 

  2. Federgruen, A., H. Groenevelt and H.C. Tijms (1984) Coordinated replenishments in a multi-item inventory system with compound Poisson demands. Management Science 30, p 344–357

    Article  Google Scholar 

  3. Goyal, S.K. and A.T. Satir, (1989) Joint replenishment inventory control: deterministic and stochastic models. European Journal of Operational research 38, p 3–13

    Article  Google Scholar 

  4. Higginson, J.K. and J.H. Bookbinder, (1994) Policy recommendations for a shipment consolidation program. Journal of Business Logistics 15, p 87–112

    Google Scholar 

  5. Higginson, J.K. and J.H. Bookbinder, (1995a) Probabilistic models of freight consolidation systems. Working paper, Department of Management Science, University of Waterloo, 1995

    Google Scholar 

  6. Higginson, J.K. and J.H. Bookbinder, (1995b) Markovian Decision Processes in Shipment Consolidation. Transportation Science 29, nb. 3

    Google Scholar 

  7. Janssen, F.B.S.L.P. (1998) Inventory management systems. Ph.D. thesis, Center for economic research, Tilburg University, The Netherlands

    Google Scholar 

  8. Kok, A.G. de (1991) Basics of Inventory Management. FEW working papers 520–525, Tilburg University, The Netherlands

    Google Scholar 

  9. Kok, A.G. de (1996) Analysis of (s,nQ)-installation stock policies in divergent multi-echelon networks. Research report TUE/TM/LBS/96-09, Eindhoven University of Technology, The Netherlands.

    Google Scholar 

  10. Liu, L. and X. Yuan, (2000) Coordinating replenishments in inventory systems with correlated demands. European Journal of Operations Research 123, p 490–503

    Article  Google Scholar 

  11. Pyke, D.A., A.G. de Kok and M. Baganha (1996) The undershoot distribution in (s,nQ)-models. Working paper TUE/TM/LBS/96-05, Eindhoven University of Technology, The Netherlands.

    Google Scholar 

  12. Smits, S.R., A.G. De Kok and P.J.M. Van Laarhoven (2000) Analysis of Divergent N-echelon (s,nQ)-policies Under Compound Renewal Demand. Submitted for publication

    Google Scholar 

  13. Tijms, H.C. (1994) Stochastic models: an algorithmic approach. John Wiley & Sons.

    Google Scholar 

  14. Viswanathan, V., (2000) Periodic review (s,S) policies for joint replenishment inventory systems. Working paper, Nanyang Business School, Nanyang tech. University, Singapore 1996

    Google Scholar 

  15. Whitt, W. (1982) Approximating a point process by a renewal process, I: Two basic methods. Operations Research 30, p 125–147.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Technology Management, Technische Universiteit Eindhoven, Pav E6, P.O. Box 513, 5600 MB, Eindhoven, The Netherlands

    S. R. Smits & A. G. de Kok

Authors
  1. S. R. Smits
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. A. G. de Kok
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of St. Gallen, Bodanstr. 6, 9000, St. Gallen, Switzerland

    Andreas Klose

  2. Department of Quantitative Methods, University of Brescia, C. da S. Chiara, 48B, 25122, Brescia, Italy

    M. Gracia Speranza

  3. INSEAD, 77305, Fontainebleau Cedex, France

    Luk N. Van Wassenhove

Rights and permissions

Reprints and permissions

Copyright information

© 2002 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Smits, S.R., de Kok, A.G. (2002). Approximations for the Waiting Time in (s,nQ)-Inventory Models for Different Types of Consolidation Policies. In: Klose, A., Speranza, M.G., Van Wassenhove, L.N. (eds) Quantitative Approaches to Distribution Logistics and Supply Chain Management. Lecture Notes in Economics and Mathematical Systems, vol 519. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-56183-2_22

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-56183-2_22

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-43690-4

  • Online ISBN: 978-3-642-56183-2

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics

Search

Navigation