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Inventory Allocation with Multi-echelon Service Level Considerations

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Computational Science and Its Applications – ICCSA 2005 (ICCSA 2005)

Part of the book series: Lecture Notes in Computer Science ((LNTCS,volume 3483))

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Abstract

This paper develops a METRIC-like method to optimize inventory allocations for low-demand items in a multi-echelon finished goods distribution system. The allocations are made by trading-off total inventory investment against service levels as measured by the stockout probabilities. We focus on a one-product three-echelon system and develop a solution procedure for such a system. We then apply that model and solution procedure to an illustrative example and compare the resulting inventory policies to optimal policies for a two-echelon system.

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Author information

Authors and Affiliations

  1. Graduate Institute of Transportation and Logistics, National Chia-Yi University, 300 University Rd., Chia-Yi, 600, Taiwan, ROC

    Jenn-Rong Lin

  2. School of Civil and Environmental Engineering, Cornell University, Hollister Hall, Ithaca, NY, 14853, USA

    Linda K. Nozick & Mark A. Turnquist

Authors
  1. Jenn-Rong Lin
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  2. Linda K. Nozick
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  3. Mark A. Turnquist
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Editor information

Editors and Affiliations

  1. Department of Mathematics and Computer Science, University of Perugia, via Vanvitelli, 1, I-06123, Perugia, Italy

    Osvaldo Gervasi

  2. Department of Computer Science, University of Calgary, 2500 University Drive N.W., T2N 1N4, Calgary, AB, Canada

    Marina L. Gavrilova

  3. William Norris Professor, Head of the Computer Science and Engineering Department, University of Minnesota, USA

    Vipin Kumar

  4. Department of Chemistry, University of Perugia, Via Elce di Sotto, 8, I-06123, Perugia, Italy

    Antonio Laganá

  5. Institute of High Performance Computing, IHCP, 1 Science Park Road, 01-01 The Capricorn, Singapore Science Park II, 117528, Singapore

    Heow Pueh Lee

  6. School of Computing, Soongsil University, Seoul, Korea

    Youngsong Mun

  7. Clayton School of IT, Monash University, 3800, Clayton, Australia

    David Taniar

  8. OptimaNumerics Ltd, Belfast, United Kingdom

    Chih Jeng Kenneth Tan

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© 2005 Springer-Verlag Berlin Heidelberg

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Lin, JR., Nozick, L.K., Turnquist, M.A. (2005). Inventory Allocation with Multi-echelon Service Level Considerations. In: Gervasi, O., et al. Computational Science and Its Applications – ICCSA 2005. ICCSA 2005. Lecture Notes in Computer Science, vol 3483. Springer, Berlin, Heidelberg. https://doi.org/10.1007/11424925_53

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  • DOI: https://doi.org/10.1007/11424925_53

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-25863-6

  • Online ISBN: 978-3-540-32309-9

  • eBook Packages: Computer ScienceComputer Science (R0)

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