liu.seSearch for publications in DiVA
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Myopic Allocation in Two-level Distribution Systems with Continuous Review and Time Based Dispatching
Linköping University, Department of Mathematics.
2007 (English)Independent thesis Advanced level (degree of Magister), 20 points / 30 hpStudent thesis
Abstract [en]

This thesis studies the allocation of stock in a two-level inventory system with stochastic demand. The system consists of one central warehouse which supplies N non-identical retailers with one single product. Customer demand occurs solely at the retailers and follows independent Poisson processes. The purpose is to investigate the value of using a more advanced allocation policy than First Come-First Serve at the central warehouse. The focus is on evaluating how well the simple First Come-First Serve assumption works in a system where the warehouse has access to real-time point-of-sale data, and where shipments are time based and consolidated for all retailers. The considered allocation policy is a myopic policy where the solution to a minimization problem, formulated as a constrained newsvendor problem, determines how the warehouse allocates its stock to the retailers. The minimization problem is solved using (a heuristic method based on) Lagrangian relaxation, and simulation is used to evaluate the average inventory holding costs and backorder costs per time unit when using the considered policy. The simulation study shows that cost savings around 1-4 percent can be expected for most system configurations. However, there were cases where savings were as high as 5 percent, as well as cases where the policy performed worse than First Come-First Serve. The study also shows that the highest cost savings are found in systems with relatively low demand, few retailers, short transportation times and a short time interval between shipments.

Place, publisher, year, edition, pages
Matematiska institutionen , 2007. , 88 p.
Keyword [en]
Inventory Theory, Distribution System, Allocation Policy, Newsvendor Problem, Lagrangian Heuristic, Simulation
National Category
Computational Mathematics
Identifiers
URN: urn:nbn:se:liu:diva-10410ISRN: LITH–MAT-EX––07/17––SEOAI: oai:DiVA.org:liu-10410DiVA: diva2:17153
Presentation
2007-11-02, Kompakta rummet, B-huset, Linköpings Universitet, 581 83 Linköping, 13:15
Uppsok
fysik/kemi/matematik
Supervisors
Examiners
Available from: 2008-01-25 Created: 2008-01-25

Open Access in DiVA

fulltext(698 kB)917 downloads
File information
File name FULLTEXT01.pdfFile size 698 kBChecksum MD5
1d8f8db082c3492ba6c14b71a29158912eec7d821e9cd8cde84c5a4d19fa724d2a2d709f
Type fulltextMimetype application/pdf

By organisation
Department of Mathematics
Computational Mathematics

Search outside of DiVA

GoogleGoogle Scholar
Total: 917 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 367 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf