Allocating A Replenishment Order Among A Family of Items

G. John Miltenburg

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Supply Chain and Inventory Management Reliability and Maintenance Optimization Management and Optimization Techniques

Abstract

Inventory control models which provide coordinated control (or joint replenishment) of families of items are very useful in practice. An important component of these models is the algorithm for allocating a total reorder quantity among the items in the family. In this paper the allocation algorithm from a new class of coordinated control models is discussed. Inventory position is modelled as a diffusion process, and both continuous review and periodic review situations are considered. This new class of coordinated control models has been shown to outperform existing models (IBM's IMPACT Inventory Control Package).

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1979Decision Systems for Inventory Management and Production Planning 1968Decision Rules for Inventory Management 1966A continuous time inventory model 1981Establishing reorder points in the ( S,c,s ) coordinated control system under compound Poisson demand 1976Verification of the theoretical consistency of a differential game in advertising 1984Multi-stage production with variable lot sizes and transportation of partial lots 1980An Interactive Stock Control System with a Strategic Management Role 1971Transfer Prices of the Multinational Firm: When will they be Arbitrary?

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