Bounds, heuristics, and approximations for distribution systems
Publication
, Journal Article
Gallego, G; Özer, Ö; Zipkin, P
Published in: Operations Research
2007
This paper develops simple approximate methods to analyze a two-stage distribution system consisting of one warehouse and multiple retailers with stochastic demand. We consider local and central control schemes. The main ideas are based on relaxing and or decomposing the system into more manageable newsvendor-type subsystems. We also provide bounds on the optimal policy and the optimal expected cost. We show that one of the heuristics is asymptotically optimal in the number of retailers. These results provide practically useful techniques as well as insights into stock-positioning issues and the drivers of system performance. © 2007 INFORMS.
Duke Scholars
Published In
Operations Research
DOI
ISSN
0030-364X
Publication Date
2007
Volume
55
Issue
3
Start / End Page
503 / 517
Related Subject Headings
- Operations Research
- 1503 Business and Management
- 0802 Computation Theory and Mathematics
- 0102 Applied Mathematics
Citation
APA
Chicago
ICMJE
MLA
NLM
Gallego, G., Özer, Ö., & Zipkin, P. (2007). Bounds, heuristics, and approximations for distribution systems. Operations Research, 55(3), 503–517. https://doi.org/10.1287/opre.1060.0373
Gallego, G., Ö. Özer, and P. Zipkin. “Bounds, heuristics, and approximations for distribution systems.” Operations Research 55, no. 3 (2007): 503–17. https://doi.org/10.1287/opre.1060.0373.
Gallego G, Özer Ö, Zipkin P. Bounds, heuristics, and approximations for distribution systems. Operations Research. 2007;55(3):503–17.
Gallego, G., et al. “Bounds, heuristics, and approximations for distribution systems.” Operations Research, vol. 55, no. 3, 2007, pp. 503–17. Scival, doi:10.1287/opre.1060.0373.
Gallego G, Özer Ö, Zipkin P. Bounds, heuristics, and approximations for distribution systems. Operations Research. 2007;55(3):503–517.
Published In
Operations Research
DOI
ISSN
0030-364X
Publication Date
2007
Volume
55
Issue
3
Start / End Page
503 / 517
Related Subject Headings
- Operations Research
- 1503 Business and Management
- 0802 Computation Theory and Mathematics
- 0102 Applied Mathematics