Article ID: | iaor1991833 |
Country: | United States |
Volume: | 38 |
Issue: | 1 |
Start Page Number: | 37 |
End Page Number: | 52 |
Publication Date: | Jan 1990 |
Journal: | Operations Research |
Authors: | Roundy Robin O. |
Keywords: | distribution |
The paper considers a multistage, multi-item distribution system in which each of a number of items is stocked at each of a number of locations. The cost of placing an order at a location depends on the set of items ordered there. Demand for the items is constant, and there is a linear holding cost for each item at each location. Only nested policies are considered. A known heuristic is guaranteed to find a policy that is within 2% of optimal. However, if there are