Article2005

On the Benefits of Pooling in Production-Inventory Systems

Saif Benjaafar · William L. Cooper · Joon-Seok Kim

98 citations0/0 files storedManagement Science

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Supply Chain and Inventory Management Management and Optimization Techniques Advanced Manufacturing and Logistics Optimization

Abstract

We study inventory pooling in systems with symmetric costs where supply lead times are endogenously generated by a finite-capacity production system. We investigate the sensitivity of the cost advantage of inventory pooling to various system parameters, including loading, service levels, demand and production time variability, and structure of the production system. The analysis reveals differences in how various parameters affect the cost reduction from pooling and suggests that these differences stem from the manner in which the parameters influence the induced correlation between lead-time demands of the demand streams. We compare these results with those obtained for pure inventory systems, where lead times are exogenous. We also compare inventory pooling with several forms of capacity pooling.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 98 citations exist upstream.

References

2000Foundations of Inventory Management 1989Stochastic Modeling and the Theory of Queues 1987Stochastic Modelling and Analysis: A Computational Approach.1979Note—Effects of Centralization on Expected Costs in a Multi-Location Newsboy Problem 2005Sell the Plant? The Impact of Contract Manufacturing on Innovation, Capacity, and Profitability 2002Optimal Stock Allocation for a Capacitated Supply System 1991On the Effect of Centralization on Expected Costs in a Multi-Location Newsboy Problem 1992Dynamic Scheduling of a Multiclass Make-to-Stock Queue

Cited by

2014Capacity Sharing and Cost Allocation among Independent Firms with Congestion 2008Conditions that cause risk pooling to increase inventory 2015Inventory Pooling Under Heavy-Tailed Demand 2016Building Supply Chain Resilience through Virtual Stockpile Pooling 2010On the Benefits of Risk Pooling in Inventory Management 2020Multilocation Newsvendor Problem: Centralization and Inventory Pooling

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.