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Author:Chan, L.
Simchi-Levi, D.
Title:Probabilistic analyses and algorithms for three-level distribution systems
Journal:Management Science
1998 : NOV, VOL. 44:11, PART 1 OF 2, p. 1562-1576
Index terms:MANAGEMENT
ALGORITHMS
DISTRIBUTION
Language:eng
Abstract:The authors consider the problem of integrating inventory control and vehicle routing into a cost-effective strategy for a distribution system consisting of a single outside vendor, a fixed number of warehouses and many geographically dispersed retailers. Each retailer faces a constant, retailer specific, demand rate and inventory holding cost is charged at the retailers and the warehouses. The authors show that, in an effective strategy which minimizes the asymptotic long run average cost, each warehouse receives fully loaded trucks from the vendor but never holds inventory.
SCIMA record nr: 188860
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