TY - BOOK

T1 - Efficient heuristics for two-echelon spare parts inventory systems with an aggregate mean waiting time constraint per local warehouse

AU - Wong, H.

AU - Kranenburg, A.A.

AU - Houtum, van, G.J.J.A.N.

AU - Cattrysse, D.

PY - 2005

Y1 - 2005

N2 - This paper presents solution procedures for determining close-to-optimal stocking
policies in a multi-item two-echelon spare parts inventory system. The system we consider
consists of a central warehouse and a number of local warehouses, and there is a target for the
aggregate mean waiting time per local warehouse. We develop four different heuristics and
derive a lower bound on the optimal total cost. The effectiveness of each heuristic is assessed by
measuring the relative gap between the heuristic’s total cost and the lower bound. The results of
the computational experiments show that a greedy procedure performs most satisfactorily. It is
accurate as indicated by relatively small gaps, easy to implement, and furthermore, the
computational requirements are limited. The computational efficiency can be increased by using
Graves’ approximate evaluation method instead of an exact evaluation method, while the results
remain accurate.

AB - This paper presents solution procedures for determining close-to-optimal stocking
policies in a multi-item two-echelon spare parts inventory system. The system we consider
consists of a central warehouse and a number of local warehouses, and there is a target for the
aggregate mean waiting time per local warehouse. We develop four different heuristics and
derive a lower bound on the optimal total cost. The effectiveness of each heuristic is assessed by
measuring the relative gap between the heuristic’s total cost and the lower bound. The results of
the computational experiments show that a greedy procedure performs most satisfactorily. It is
accurate as indicated by relatively small gaps, easy to implement, and furthermore, the
computational requirements are limited. The computational efficiency can be increased by using
Graves’ approximate evaluation method instead of an exact evaluation method, while the results
remain accurate.

M3 - Report

SN - 90-386-0536-6

T3 - BETA publicatie : working papers

BT - Efficient heuristics for two-echelon spare parts inventory systems with an aggregate mean waiting time constraint per local warehouse

PB - Technische Universiteit Eindhoven

CY - Eindhoven

ER -