An exact solution procedure for multi-item two-echelon spare parts inventory control problem with batch ordering in the central warehouse

• Published in: Operations research letters Vol. 38; no. 5; pp. 454 - 461
• Main Authors: Topan, Engin, Pelin Bayındır, Z., Tan, Tarkan
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier B.V 01.09.2010; Elsevier
• Subjects: Applied sciences; Batch ordering; Branch and price; Exact sciences and technology; Exact solutions; Inventories; Inventory; Inventory control, production control. Distribution; Inventory controls; Mathematical analysis; Multi-item; Operational research and scientific management; Operational research. Management science; Operations research; Order disorder; Policies; Spare parts; Stockpiling; Two-echelon; Warehouses; Multi-item; Two-echelon; Batch ordering; Spare parts; Branch and price; Inventory; Branching; Fixed cost; Order picking; Modeling; Exact solution; Response time; Warehousing; Multi item management; Spare part; Batch process; Batch production; Ordering; Inventory control
• ISSN: 0167-6377; 1872-7468
• DOI: 10.1016/j.orl.2010.05.006

We consider a multi-item two-echelon inventory system in which the central warehouse operates under a ( Q , R ) policy, and the local warehouses implement basestock policy. An exact solution procedure is proposed to find the inventory control policy parameters that minimize the system-wide inventory holding and fixed ordering cost subject to an aggregate mean response time constraint at each facility.