An Effective Approach to Compute Replenish Time Interval for Two Echelon Inventory System

Duangrat Hirunyasiri, Anan Mungwattana

This paper investigates the effective inventory replenish time interval policy for two-echelon inventory management over an infinite planning horizon for an item with deterministic demand rates and constant lead times. It is assumed that shortages are not allowed. This heuristic is derived for a central warehouse and N-retailers to minimize the ordering, holding, and transportation cost. The heuristic development from the power of two policy while our computational results are provided to show that the heuristic is not necessary to be restrict to power of two policy and we also propose the heuristic which is more practical and more useful for decision makers managing their warehouses and retailers in real-life cases.

Volume 12 | Issue 6

Pages: 807-817

DOI: 10.5373/JARDCS/V12I6/S20201096