Note: A Simple Heuristic for Serial Inventory Systems with Fixed Order Costs

Authors:
Kevin H. Shang
Affiliations:
Fuqua School of Business, Duke University, Durham, North Carolina 27708
Venue:
Operations Research
Year:
2008

Citing 0
Cited 6

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A simple heuristic for echelon (r,nQ, T) policies in serial supply chains

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Abstract

We propose a heuristic for finding base order quantities for stochastic inventory models. The heuristic includes two steps. The first clusters the stages according to cost parameters. The second solves a single-stage problem for each cluster with the original problem data. In a numerical study, we show that the heuristic is near optimal.