Multi-Item Two-Echelon Spare Parts Inventory Control with Batch Ordering in the Central Warehouse

Tan T., Bayındır Z. P., Topan E.

INFORMS 2009 Annual Meeting, California, United States Of America, 24 - 30 October 2009, pp.1

  • Publication Type: Conference Paper / Summary Text
  • City: California
  • Country: United States Of America
  • Page Numbers: pp.1
  • Middle East Technical University Affiliated: Yes


 We consider a multi-item two-echelon inventory system in which the central warehouse operates under a (Q,R) policy and the local warehouses implement basestock policy. The objective is to find the policy parameters that minimize the system-wide inventory holding and ordering costs subject to an aggregate mean response time constraint at each facility. We propose different heuristics based on Lagrangean relaxation and sequential determination of policy parameters, and discuss their performances.