Analysis and comparison of two strategies for multi-item inventory systems with joint replenishment costs

Multi-item inventory systems with joint replenishment costs are studied for constant deterministic demand. Two different types of strategies are distinguished: direct grouping strategies and indirect grouping strategies. For these types of strategies different heuristics are reviewed. The performances of the strategies is measured as the percentage cost savings of a joint replenishment strategy relative to an independent strategy. These performances are quantified through simulation. The input-output behaviour of several simulation experiments is summarized by regression analysis.