An exact solution procedure for multi-item two-echelon spare parts inventory control problem with batch ordering in the central warehouse

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Topan E., BAYINDIR Z. P., Tan T.

OPERATIONS RESEARCH LETTERS, vol.38, no.5, pp.454-461, 2010 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 38 Issue: 5
  • Publication Date: 2010
  • Doi Number: 10.1016/j.orl.2010.05.006
  • Journal Name: OPERATIONS RESEARCH LETTERS
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.454-461
  • Middle East Technical University Affiliated: Yes

Abstract

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. An exact solution procedure is proposed to find the inventory control policy parameters that minimize the system-wide inventory holding and fixed ordering cost subject to an aggregate mean response time constraint at each facility. (C) 2010 Elsevier B.V. All rights reserved.