Distribution planning for a divergent 2-echelon network without intermediate stocks under service restrictions

J.H.C.M. Verrijdt, A.G. Kok, de

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Abstract

In this paper we discuss a distribution planning procedure for a system consisting of one central depot supplying a number of end stockpoints. The central depot is not allowed to hold stock and allocates all incoming goods immediately to these end stockpoints. An ordering and allocation policy is presented which is based on a decomposition method. The emphasis lies on the realization of pre-determined target service levels in the various stockpoints. In this paper we present two adjustment methods which improve the service performance considerably in certain cases. Another important contribution of this paper is the generalization of the concept of imbalance. An analytical approximation of the probability of imbalance is presented. An extensive simulation study validates the analytical results.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages26
Publication statusPublished - 1993

Publication series

NameMemorandum COSOR
Volume9335
ISSN (Print)0926-4493

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