Models and algorithms for the dynamic-demand joint replenishment problem

This paper considers the problem of coordinated ordering of items having deterministic but time-varying demands where there is a common ordering cost if one or more of these items are ordered in addition to individual items ordering costs. Two new integer linear-programming formulations are presented and compared with the classical formulation. Several well-known heuristics are described and a new improvement procedure is proposed. The relative performance of these heuristics is assessed. Results show the superiority of the new formulations and of the new improvement procedure.