On the effect of centralization on expected costs in a multi-location newsboy problem

On the effect of centralization on expected costs in a multi-location newsboy problem

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Article ID: iaor19921252
Country: United Kingdom
Volume: 42
Issue: 11
Start Page Number: 1025
End Page Number: 1030
Publication Date: Nov 1991
Journal: Journal of the Operational Research Society
Authors: ,
Keywords: location
Abstract:

This paper deals with a single-period, single-product inventory model with seval individual sources of demand. It is a multi-location problem with an opportunity for centralization. Two types of inventory system are considered in this paper: the decentralized system and the centralized system. The aim of this paper is to extend Eppen’s model by adding the consideration of transportation cost to constitute a new inventory model. With this new inventory model we prove three theorems that include the results of Eppen’s model.

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