A comparison of inventory replenishment heuristics for minimizing maximum storage

A comparison of inventory replenishment heuristics for minimizing maximum storage

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Article ID: iaor20001970
Country: United States
Volume: 18
Issue: 3/4
Start Page Number: 245
End Page Number: 258
Publication Date: Jan 1998
Journal: American Journal of Mathematical and Management Sciences
Authors:
Keywords: heuristics
Abstract:

Consider the problem of minimizing the maximum storage requirement resulting from the once-per-cycle replenishment of several items. Demand is assumed to be known and constant, and no backlogging is permitted. By contrast with previous models, replenishment may take place only at k discrete points in time. We prove that this problem is binary NP-hard for fixed k. Consequently, a natural heuristic based on the rounding of optimal continuous time solutions is described. This heuristic provides a worst case performance ratio of 1+ C/k, where C is a numerical constant, and 1/2 < C < 2. A heuristic borrowed from multiprocessor scheduling provides a worst case performance ratio of 2. Extensive computational testing indicates that the solutions delivered by the heuristics are, on average, very close to optimal in value.

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