Effect of modeling fixed cost in a serial inventory system with periodic review
We study a two-echelon serial inventory system with stochastic demand. We assume that fixed ordering costs are charged only when an order initiates a non-zero shipment. The system is centrally controlled and ordering decisions are based on echelon base stock policies. The review period of the upper...
Gespeichert in:
| Veröffentlicht in: | OR Spectrum 2014-03, Vol.36 (2), p.481-502 |
|---|---|
| Hauptverfasser: | , , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 502 |
|---|---|
| container_issue | 2 |
| container_start_page | 481 |
| container_title | OR Spectrum |
| container_volume | 36 |
| creator | Karaarslan, A. G. Kiesmüller, G. P. de Kok, A. G. |
| description | We study a two-echelon serial inventory system with stochastic demand. We assume that fixed ordering costs are charged only when an order initiates a non-zero shipment. The system is centrally controlled and ordering decisions are based on echelon base stock policies. The review period of the upper echelon is an integer multiple of the review period of the lower echelon. We derive an exact analytical expression for the objective function. From this expression, we determine optimal base stock levels and review periods. Through a numerical study we show that there may be several combinations of optimal review periods and that under high fixed ordering costs both stockpoints have the same order frequency. In addition, we identify parameter settings under which the system behaves like a PUSH-system, where the upstream stockpoint never holds any stock. Generally, in literature fixed ordering costs are charged at every review moment, even if no shipment results due to zero upstream stock. We test the impact of this simplifying assumption and illustrate when it is justified. |
| doi_str_mv | 10.1007/s00291-013-0334-7 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_miscellaneous_1671628052</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>1671628052</sourcerecordid><originalsourceid>FETCH-LOGICAL-c483t-7358ad28baa100ed4eb648df2a02709c81ad4d9b3075c8585a26ce5943ee4a093</originalsourceid><addsrcrecordid>eNp1kE1LAzEQhoMoWKs_wFvAi5fVySabZI9S6gcIveg5pNnZmrLd1GTb2n9vSj2I4GkG5nmHl4eQawZ3DEDdJ4CyZgUwXgDnolAnZMQEl4XkIE7JCJhihRRSn5OLlJYAlVJcj8hs2rboBhpaugoNdr5f0NZ_YUNdSAP1PbU0YfS2y_sW-yHEPU37NOCK7vzwQdf5GBrvaMStx90lOWttl_DqZ47J--P0bfJcvM6eXiYPr4UTmg-F4pW2Tann1ub62AicS6GbtrRQKqidZrYRTT3noCqnK13ZUjqsasERhYWaj8nt8e86hs8NpsGsfHLYdbbHsEmGScVkqaEqM3rzB12GTexzO8NEnZswATJT7Ei5GFKK2Jp19Csb94aBOSg2R8UmKzYHxUblTHnMpMz2C4y_Pv8b-gbGzH2S</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1497351406</pqid></control><display><type>article</type><title>Effect of modeling fixed cost in a serial inventory system with periodic review</title><source>EBSCOhost Business Source Complete</source><source>SpringerLink Journals - AutoHoldings</source><creator>Karaarslan, A. G. ; Kiesmüller, G. P. ; de Kok, A. G.</creator><creatorcontrib>Karaarslan, A. G. ; Kiesmüller, G. P. ; de Kok, A. G.</creatorcontrib><description>We study a two-echelon serial inventory system with stochastic demand. We assume that fixed ordering costs are charged only when an order initiates a non-zero shipment. The system is centrally controlled and ordering decisions are based on echelon base stock policies. The review period of the upper echelon is an integer multiple of the review period of the lower echelon. We derive an exact analytical expression for the objective function. From this expression, we determine optimal base stock levels and review periods. Through a numerical study we show that there may be several combinations of optimal review periods and that under high fixed ordering costs both stockpoints have the same order frequency. In addition, we identify parameter settings under which the system behaves like a PUSH-system, where the upstream stockpoint never holds any stock. Generally, in literature fixed ordering costs are charged at every review moment, even if no shipment results due to zero upstream stock. We test the impact of this simplifying assumption and illustrate when it is justified.</description><identifier>ISSN: 0171-6468</identifier><identifier>EISSN: 1436-6304</identifier><identifier>DOI: 10.1007/s00291-013-0334-7</identifier><language>eng</language><publisher>Berlin/Heidelberg: Springer Berlin Heidelberg</publisher><subject>Business and Management ; Calculus of Variations and Optimal Control; Optimization ; Costs ; Inventory management ; Mathematical analysis ; Mathematical models ; Operations research ; Operations Research/Decision Theory ; Optimization ; Optimization techniques ; Order disorder ; Order picking ; Raw materials ; Regular Article ; Serials ; Shipments ; Statistical analysis ; Stockpiling ; Studies ; Upstream</subject><ispartof>OR Spectrum, 2014-03, Vol.36 (2), p.481-502</ispartof><rights>Springer-Verlag Berlin Heidelberg 2013</rights><rights>Springer-Verlag Berlin Heidelberg 2014</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c483t-7358ad28baa100ed4eb648df2a02709c81ad4d9b3075c8585a26ce5943ee4a093</citedby><cites>FETCH-LOGICAL-c483t-7358ad28baa100ed4eb648df2a02709c81ad4d9b3075c8585a26ce5943ee4a093</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://link.springer.com/content/pdf/10.1007/s00291-013-0334-7$$EPDF$$P50$$Gspringer$$H</linktopdf><linktohtml>$$Uhttps://link.springer.com/10.1007/s00291-013-0334-7$$EHTML$$P50$$Gspringer$$H</linktohtml><link.rule.ids>314,780,784,27924,27925,41488,42557,51319</link.rule.ids></links><search><creatorcontrib>Karaarslan, A. G.</creatorcontrib><creatorcontrib>Kiesmüller, G. P.</creatorcontrib><creatorcontrib>de Kok, A. G.</creatorcontrib><title>Effect of modeling fixed cost in a serial inventory system with periodic review</title><title>OR Spectrum</title><addtitle>OR Spectrum</addtitle><description>We study a two-echelon serial inventory system with stochastic demand. We assume that fixed ordering costs are charged only when an order initiates a non-zero shipment. The system is centrally controlled and ordering decisions are based on echelon base stock policies. The review period of the upper echelon is an integer multiple of the review period of the lower echelon. We derive an exact analytical expression for the objective function. From this expression, we determine optimal base stock levels and review periods. Through a numerical study we show that there may be several combinations of optimal review periods and that under high fixed ordering costs both stockpoints have the same order frequency. In addition, we identify parameter settings under which the system behaves like a PUSH-system, where the upstream stockpoint never holds any stock. Generally, in literature fixed ordering costs are charged at every review moment, even if no shipment results due to zero upstream stock. We test the impact of this simplifying assumption and illustrate when it is justified.</description><subject>Business and Management</subject><subject>Calculus of Variations and Optimal Control; Optimization</subject><subject>Costs</subject><subject>Inventory management</subject><subject>Mathematical analysis</subject><subject>Mathematical models</subject><subject>Operations research</subject><subject>Operations Research/Decision Theory</subject><subject>Optimization</subject><subject>Optimization techniques</subject><subject>Order disorder</subject><subject>Order picking</subject><subject>Raw materials</subject><subject>Regular Article</subject><subject>Serials</subject><subject>Shipments</subject><subject>Statistical analysis</subject><subject>Stockpiling</subject><subject>Studies</subject><subject>Upstream</subject><issn>0171-6468</issn><issn>1436-6304</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2014</creationdate><recordtype>article</recordtype><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>AZQEC</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><sourceid>GNUQQ</sourceid><recordid>eNp1kE1LAzEQhoMoWKs_wFvAi5fVySabZI9S6gcIveg5pNnZmrLd1GTb2n9vSj2I4GkG5nmHl4eQawZ3DEDdJ4CyZgUwXgDnolAnZMQEl4XkIE7JCJhihRRSn5OLlJYAlVJcj8hs2rboBhpaugoNdr5f0NZ_YUNdSAP1PbU0YfS2y_sW-yHEPU37NOCK7vzwQdf5GBrvaMStx90lOWttl_DqZ47J--P0bfJcvM6eXiYPr4UTmg-F4pW2Tann1ub62AicS6GbtrRQKqidZrYRTT3noCqnK13ZUjqsasERhYWaj8nt8e86hs8NpsGsfHLYdbbHsEmGScVkqaEqM3rzB12GTexzO8NEnZswATJT7Ei5GFKK2Jp19Csb94aBOSg2R8UmKzYHxUblTHnMpMz2C4y_Pv8b-gbGzH2S</recordid><startdate>20140301</startdate><enddate>20140301</enddate><creator>Karaarslan, A. G.</creator><creator>Kiesmüller, G. P.</creator><creator>de Kok, A. G.</creator><general>Springer Berlin Heidelberg</general><general>Springer Nature B.V</general><scope>AAYXX</scope><scope>CITATION</scope><scope>0U~</scope><scope>1-H</scope><scope>3V.</scope><scope>7SP</scope><scope>7TA</scope><scope>7TB</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8AL</scope><scope>8AO</scope><scope>8FD</scope><scope>8FE</scope><scope>8FG</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>ARAPS</scope><scope>AZQEC</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>BGLVJ</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FR3</scope><scope>FRNLG</scope><scope>F~G</scope><scope>GNUQQ</scope><scope>HCIFZ</scope><scope>JG9</scope><scope>JQ2</scope><scope>K60</scope><scope>K6~</scope><scope>K7-</scope><scope>KR7</scope><scope>L.-</scope><scope>L.0</scope><scope>L7M</scope><scope>M0C</scope><scope>M0N</scope><scope>P5Z</scope><scope>P62</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>Q9U</scope></search><sort><creationdate>20140301</creationdate><title>Effect of modeling fixed cost in a serial inventory system with periodic review</title><author>Karaarslan, A. G. ; Kiesmüller, G. P. ; de Kok, A. G.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c483t-7358ad28baa100ed4eb648df2a02709c81ad4d9b3075c8585a26ce5943ee4a093</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2014</creationdate><topic>Business and Management</topic><topic>Calculus of Variations and Optimal Control; Optimization</topic><topic>Costs</topic><topic>Inventory management</topic><topic>Mathematical analysis</topic><topic>Mathematical models</topic><topic>Operations research</topic><topic>Operations Research/Decision Theory</topic><topic>Optimization</topic><topic>Optimization techniques</topic><topic>Order disorder</topic><topic>Order picking</topic><topic>Raw materials</topic><topic>Regular Article</topic><topic>Serials</topic><topic>Shipments</topic><topic>Statistical analysis</topic><topic>Stockpiling</topic><topic>Studies</topic><topic>Upstream</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Karaarslan, A. G.</creatorcontrib><creatorcontrib>Kiesmüller, G. P.</creatorcontrib><creatorcontrib>de Kok, A. G.</creatorcontrib><collection>CrossRef</collection><collection>Global News & ABI/Inform Professional</collection><collection>Trade PRO</collection><collection>ProQuest Central (Corporate)</collection><collection>Electronics & Communications Abstracts</collection><collection>Materials Business File</collection><collection>Mechanical & Transportation Engineering Abstracts</collection><collection>Access via ABI/INFORM (ProQuest)</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Global (Alumni Edition)</collection><collection>Computing Database (Alumni Edition)</collection><collection>ProQuest Pharma Collection</collection><collection>Technology Research Database</collection><collection>ProQuest SciTech Collection</collection><collection>ProQuest Technology Collection</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni Edition)</collection><collection>ProQuest Central UK/Ireland</collection><collection>Advanced Technologies & Aerospace Collection</collection><collection>ProQuest Central Essentials</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>Technology Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central Korea</collection><collection>Engineering Research Database</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Central Student</collection><collection>SciTech Premium Collection</collection><collection>Materials Research Database</collection><collection>ProQuest Computer Science Collection</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>Computer Science Database</collection><collection>Civil Engineering Abstracts</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Professional Standard</collection><collection>Advanced Technologies Database with Aerospace</collection><collection>ABI/INFORM Global</collection><collection>Computing Database</collection><collection>Advanced Technologies & Aerospace Database</collection><collection>ProQuest Advanced Technologies & Aerospace Collection</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central Basic</collection><jtitle>OR Spectrum</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Karaarslan, A. G.</au><au>Kiesmüller, G. P.</au><au>de Kok, A. G.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Effect of modeling fixed cost in a serial inventory system with periodic review</atitle><jtitle>OR Spectrum</jtitle><stitle>OR Spectrum</stitle><date>2014-03-01</date><risdate>2014</risdate><volume>36</volume><issue>2</issue><spage>481</spage><epage>502</epage><pages>481-502</pages><issn>0171-6468</issn><eissn>1436-6304</eissn><abstract>We study a two-echelon serial inventory system with stochastic demand. We assume that fixed ordering costs are charged only when an order initiates a non-zero shipment. The system is centrally controlled and ordering decisions are based on echelon base stock policies. The review period of the upper echelon is an integer multiple of the review period of the lower echelon. We derive an exact analytical expression for the objective function. From this expression, we determine optimal base stock levels and review periods. Through a numerical study we show that there may be several combinations of optimal review periods and that under high fixed ordering costs both stockpoints have the same order frequency. In addition, we identify parameter settings under which the system behaves like a PUSH-system, where the upstream stockpoint never holds any stock. Generally, in literature fixed ordering costs are charged at every review moment, even if no shipment results due to zero upstream stock. We test the impact of this simplifying assumption and illustrate when it is justified.</abstract><cop>Berlin/Heidelberg</cop><pub>Springer Berlin Heidelberg</pub><doi>10.1007/s00291-013-0334-7</doi><tpages>22</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0171-6468 |
| ispartof | OR Spectrum, 2014-03, Vol.36 (2), p.481-502 |
| issn | 0171-6468 1436-6304 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_1671628052 |
| source | EBSCOhost Business Source Complete; SpringerLink Journals - AutoHoldings |
| subjects | Business and Management Calculus of Variations and Optimal Control Optimization Costs Inventory management Mathematical analysis Mathematical models Operations research Operations Research/Decision Theory Optimization Optimization techniques Order disorder Order picking Raw materials Regular Article Serials Shipments Statistical analysis Stockpiling Studies Upstream |
| title | Effect of modeling fixed cost in a serial inventory system with periodic review |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-02T06%3A37%3A14IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Effect%20of%20modeling%20fixed%20cost%20in%20a%20serial%20inventory%20system%20with%20periodic%20review&rft.jtitle=OR%20Spectrum&rft.au=Karaarslan,%20A.%20G.&rft.date=2014-03-01&rft.volume=36&rft.issue=2&rft.spage=481&rft.epage=502&rft.pages=481-502&rft.issn=0171-6468&rft.eissn=1436-6304&rft_id=info:doi/10.1007/s00291-013-0334-7&rft_dat=%3Cproquest_cross%3E1671628052%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1497351406&rft_id=info:pmid/&rfr_iscdi=true |