Coordinated Replenishments in a Multi-Item Inventory System with Compound Poisson Demands

• Published in: Management science Vol. 30; no. 3; pp. 344 - 357
• Main Authors: Federgruen, A, Groenevelt, H, Tijms, H. C
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.03.1984; Institute of Management Sciences; Institute for Operations Research and the Management Sciences
• Series: Management Science
• Subjects: Algorithms; Approximation; Average cost; Carrying costs; compound Poisson demand processes; coordinated replenishments; Cost control; Decision making models; Decision theory; Decomposition; Excess demand; Heuristic; Heuristics; Integers; Inventories; Inventory control; Inventory management; Lead; Lead compounds; multi-item inventory systems; Order quantity; Poisson process; policy-iteration algorithm; Random variables; service level constraint

In many practical applications or multi-item inventory systems significant economies of scale can be exploited when coordinating replenishment orders for groups of items. This paper considers a continuous review multi-item inventory system with compound Poisson demand processes; excess demands are b...