Evaluation of a joint replenishment policy with sales-based threshold and stochastic demand

doi:10.1016/j.cie.2022.108525

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	Evaluation of a joint replenishment policy with sales-based threshold and stochastic demand
	Wan, Guangyu 1,2; Cao, Yu 3; Wang, Shouyang 4,5
	2022-10-01
发表期刊	COMPUTERS & INDUSTRIAL ENGINEERING
ISSN	0360-8352
卷号	172 页码:11
摘要	In this study, we consider a stochastic joint replenishment problem with Poisson demand, where multiple items are replenished jointly through a common supplier. We study a novel type of joint replenishment policy controlled by a sales threshold, under which new orders are placed to restore every item's inventory position to a base-stock level when the system's accumulated sales generated since the last order reach a certain threshold. The sales threshold enables our model to capture multiple items' value heterogeneity that has been ignored by the quantity-based threshold in traditional joint replenishment control policy. We first characterize the inventory dynamics of the joint replenishment model by the semi-Markov chain method and then provide an approach to evaluate the exact long-run average system inventory-related costs. We further provide an approach to optimize the joint replenishment policy. Numerical experiments are conducted to compare the sales-based threshold policy with the traditional quantity-based threshold policy. Our results show that the sales-based threshold policy can significantly outperform the quantity-based threshold policy, especially for a system with a high holding cost rate, short lead time, low fixed ordering cost, and large heterogeneity among products. This is because the sales-based threshold adds an extra dimension to differentiate the products in addition to the use of different stock levels for multiple items. Our results help practitioners understand the underlying factors that drive the effectiveness of the sales-based threshold policy.
关键词	Inventory control Cost evaluation Joint replenishment problem Sales-based threshold Semi-Markov chain
DOI	10.1016/j.cie.2022.108525
收录类别	SCI
语种	英语
资助项目	National Natural Science Foun-dation of China ; Natural Science Foun-dation of Hunan Province ; Leading Project of Hunan Science and Technology Innovation Talents Program ; [71972182,71802076] ; [2020JJ2051,2022JJ30176] ; [2021RC4007]
WOS研究方向	Computer Science ; Engineering
WOS类目	Computer Science, Interdisciplinary Applications ; Engineering, Industrial
WOS记录号	WOS:000891311800014
出版者	PERGAMON-ELSEVIER SCIENCE LTD
引用统计
文献类型	期刊论文
条目标识符	http://ir.amss.ac.cn/handle/2S8OKBNM/60544
专题	中国科学院数学与系统科学研究院
通讯作者	Cao, Yu
作者单位	1.Hunan Univ, Sch Econ & Trade, Changsha 410082, Peoples R China 2.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China 3.Cent South Univ, Business Sch, Changsha 410083, Peoples R China 4.Univ Chinese Acad Sci, Sch Econ & Management, Beijing 100190, Peoples R China 5.Chinese Acad Sci, Ctr Forecasting Sci, Beijing 100190, Peoples R China
推荐引用方式 GB/T 7714	Wan, Guangyu,Cao, Yu,Wang, Shouyang. Evaluation of a joint replenishment policy with sales-based threshold and stochastic demand[J]. COMPUTERS & INDUSTRIAL ENGINEERING,2022,172:11.
APA	Wan, Guangyu,Cao, Yu,&Wang, Shouyang.(2022).Evaluation of a joint replenishment policy with sales-based threshold and stochastic demand.COMPUTERS & INDUSTRIAL ENGINEERING,172,11.
MLA	Wan, Guangyu,et al."Evaluation of a joint replenishment policy with sales-based threshold and stochastic demand".COMPUTERS & INDUSTRIAL ENGINEERING 172(2022):11.