Abstract
A multi-echelon divergent inventory system with periodic customer demand is considered. A central division is responsible for the control of flows of goods through the system. The replenishment mechanism follows stagewise nested (R,S)-policies. In case of products or material shortage at the upstream stockpoint, an allocation decision must be made which requires the use of rationing rules. In this paper a new rationing heuristic based on multiple criteria is presented. Computational results indicate the effectiveness of the heuristic.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Axsäter, S. Optimization of order-up-to-S policies in two-echelon inventory systems with periodic review. Naval Research Logistics, 40: 245–253 (1993).
Bollapragada, S., Akella, R., Srinivasan, R. Centralized ordering and allocation policies in a two-echelon system with non-identical warehouses. European Journal of Operational Research, 106: 74–81 (1998).
Clark, A. J. A dynamic, single-item, multi-echelon inventory model. Technical report, Rand Corporation, Santa Monica, California (1958).
Clark, A. J., Scarf, H. E. Optimal policies for a multi-echelon inventory problem. Management Science, 6: 475–490 (1960).
de Kok, A. G. Hierarchical production planning for consumer goods. European Journal of Operational Research, 45: 55–69 (1990).
de Kok, A. G., Lagodimos, A. G., Seidel, H. P. Stock allocation in a two-echelon distribution network under service constraints. Working Paper TUE/BDK/LBS/94-03, Faculty of Technology Management, Eindhoven University of Technology, P.O. Box 513, NL-5600 MB Eindhoven (1994).
Diks, E. B. Controlling Divergent Multi-Echelon Systems. Thesis, Eindhoven University of Technology (1997).
Diks, E. B., de Kok, A. G., Lagodimos, A. G. Multi-echelon systems: A service measure perspective. European Journal of Operational Research, 95: 241–263 (1996).
Eppen, G. D., Schrage, L. Centralized ordering policies in a multi-warehouse system with lead times and random demand. In: Schwarz, L. B. (Hrsg.), Multi-Level Production/Inventory Control Systems: Theory and Practice, Bd. 16 von Studies in the Management Sciences, S. 51-67. North-Holland, Amsterdam (1981).
Ernst, R., Kamrad, B. Allocation of warehouse inventory with electronic data interchange and fixed reorder intervals. European Journal of Operational Research, 103: 117–128 (1997).
Federgruen, A. Centralized planning models for multi-echelon inventory systems under uncertainty. In: Graves, S. C, Rinnooy Kan, A. H. G., Zipkin, P. H. (Hrsg.), Logistics of Production and Inventory, Bd. 4 von Handbooks in Operations Research and Management Science, S. 133–173. North-Holland, Amsterdam (1993).
Graves, S. C. A multi-echelon inventory model with fixed reorder intervals. Working Paper 3045-89-MS, Sloan School of Management (1989).
Graves, S. C. A multiechelon inventory model with fixed replenishment intervals. Management Science, 42: 1–18 (1996).
Inderfurth, K. Safety stocks in multistage divergent inventory systems: A survey. International Journal for Production Economics, 35: 321–329 (1994).
Jackson, P. L. Stock allocation in a two-echelon distribution system or what to do until your ship comes in. Management Science, 34: 880–895 (1988).
Lagodimos, A. G. Multi-echelon service models for inventory systems under different rationing policies. International Journal of Production Research, 30: 939–958 (1992).
Langenhoff, L. J. G., Zijm, W. H. M. An analytical theory of multi-echelon production/distribution systems. Statistica Neerlandica, 44: 149–174 (1990).
Rosling, K. R. Optimal inventory policies for assembly systems under random demands. Operations Research, 37: 565–579 (1989).
van der Heijden, M. C. Supply rationing in multi-echelon divergent systems. European Journal of Operational Research (1997).
van Donselaar, K. Material Coordination under Uncertainty. Thesis, Einhoven University of Technology (1989).
van Donselaar, K. Personal communication. In: Diks (1997).
van Donselaar, K., Wijngaard, J. Commonality and safety stocks. Engineering Costs and Production Economics, 12: 197–204 (1987).
van Donselaar, K. H. Integral stock norm in divergent systems with lot-sizes. European Journal of Operational Research, 45: 70–84 (1990).
van Houtum, G. J., Inderfurth, K., Zijm, W. H. M. Materials coordination in stochastic multi-echelon systems. European Journal of Operational Research, 95: 1–23 (1996).
Verrijdt, J. H. C. M., de Kok, A. G. Distribution planning for a divergent depotless two-echelon network under service constraints. European Journal of Operational Research, 89: 341–354 (1996).
Wahl, C. Performance analysis in divergent echelon systems. Working paper, Institut für Unternehmensforschung (Operations Research), Universität St. Gallen, Bodanstrasse 6, CH-9000 St. Gallen (1998).
Zipkin, P. H. On the imbalance of inventories in multi-echelon systems. Mathematics of Operations Research, 9: 402–423 (1984).
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1999 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Tüshaus, U., Wahl, C. (1999). Multiple Criteria Rationing in Divergent Echelon Systems. In: Speranza, M.G., Stähly, P. (eds) New Trends in Distribution Logistics. Lecture Notes in Economics and Mathematical Systems, vol 480. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58568-5_15
Download citation
DOI: https://doi.org/10.1007/978-3-642-58568-5_15
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-66617-2
Online ISBN: 978-3-642-58568-5
eBook Packages: Springer Book Archive