Joint replenishment model with substitution

Salameh, Moueen K.; Yassine, Ali A.; Maddah, Bacel; Ghaddar, Likaa

doi:10.1016/j.apm.2013.12.008

Cited by 45 publications

(27 citation statements)

References 27 publications

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“…The JRP occurs when one considers the interdependency among different groups of products in a same order provided by a single supplier, in the inventory replenishment process (Khouja & Goyal, 2008;Wang et al, 2012b;Salameh et al, 2014). The objective is to optimize the total replenishment cost by reducing the inventory ordering and holding costs (Wang et al, 2012c;Salameh et al, 2014;Qu et al, 2015;Wang et al, 2015).…”

Section: The Joint Replenishment Problem In Inventory Managementmentioning

confidence: 99%

“…Companies seek models to make decisions on inventory management that result in efficient JRP solutions, since the replenishment of multi-items is a common context within the operation environment (Salameh et al, 2014). Furthermore, according to Salameh et al (2014), the JRP guarantee total cost reduction compared to single-item replenishment.…”

Section: Introductionmentioning

confidence: 99%

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A systematic literature review on the joint replenishment problem solutions: 2006-2015

Bastos

Mendes

Nunes

et al. 2017

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Among all existing inventory replenishment models, this research was dedicated to the Joint Replenishment Problem (JRP), which consists in the replenishment of multiple items simultaneously, aiming total cost reduction. Literature has presented several optimal and approximated solutions to this problem, with different applications and techniques, which results in a large quantity of solution proposals. Therefore, this research aimed to map existing solutions to the problem in 2006-2015 in order to provide a guide for interested parts in JRP and to update previous reviews. Hence, systematic review was used to assess papers from that period interval. From a total of 128 papers, a general trend for seeking JRP extensions and practical applications was verified. Furthermore, the heuristic and metaheuristic methods were the most used and considered the most suitable due to their simplicity in understanding and application. KeywordsInventory management. Multi-product. Joint replenishment problem. Systematic review.

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Section: The Joint Replenishment Problem In Inventory Managementmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

A systematic literature review on the joint replenishment problem solutions: 2006-2015

Bastos

Mendes

Nunes

et al. 2017

Prod.

View full text Add to dashboard Cite

show abstract

“…This paper makes the model of Krommyda et al (2015), Salameh et al (2014), and Rasouli and NakhaiKamalabadi (2014) more realistic and applicable by taking into account the effect of deterioration and cost of substitution on inventory of the substitutable items. Demand is considered as a constant function for both mutually substitutable items.…”

Section: Introductionmentioning

confidence: 99%

“…Taleizadeh et al (2015) gave Joint optimization of price, replenishment frequency, replenishment cycle and production rate in vendor-managed inventory system with deteriorating items. Recently, Krommyda et al (2015), Salameh et al (2014), Rasouli and NakhaiKamalabadi (2014), and Gerchack and Grosfeld (1999) developed inventory model for two substitutable item with deterministic demand, constant holding cost and fixed ordering cost but no one considered the effect of deterioration in inventory decision of substitutable items. Zhao et al (2014) analyzed the pricing decision for two substitutable product with price-dependent probabilistic demand with fixed ordering cost and constant holding cost while Ye (2014), Huang and Ke (2014), Li et al (2013), Li and You (2012), Hsieh (2011), andXue andSong (2007) developed the inventory policy for multiple substitutable item with stochastic demand, fixed ordering cost and constant holding cost.…”

Section: Introductionmentioning

confidence: 99%

“…In the recent years, little bit attention has been given in the research for the stock-out-based substitution within the EOQ setting under deterministic demand and to the best of our knowledge no one consider the concept of deterioration for the substitutable items with deterministic demand and joint replenishment. Recently, Salameh et al (2014) developed the joint replenishment policy for substitution by considering the deterministic demand, closely related to this paper, but they have not considered the concept of deterioration which is more realistic to determine the accurate optimal ordering quantity in the current era of competitive business strategies. Large numbers of the literature are available in inventory modelling of substitutable and deteriorating item separately.…”

Section: Introductionmentioning

confidence: 99%

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Optimal ordering quantities for substitutable deteriorating items under joint replenishment with cost of substitution

Mishra

2017

J Ind Eng Int

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In this paper we develop an inventory model, to determine the optimal ordering quantities, for a set of two substitutable deteriorating items. In this inventory model the inventory level of both items depleted due to demands and deterioration and when an item is out of stock, its demands are partially fulfilled by the other item and all unsatisfied demand is lost. Each substituted item incurs a cost of substitution and the demands and deterioration is considered to be deterministic and constant. Items are order jointly in each ordering cycle, to take the advantages of joint replenishment. The problem is formulated and a solution procedure is developed to determine the optimal ordering quantities that minimize the total inventory cost. We provide an extensive numerical and sensitivity analysis to illustrate the effect of different parameter on the model. The key observation on the basis of numerical analysis, there is substantial improvement in the optimal total cost of the inventory model with substitution over without substitution.

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Inventory policies for two products under Poisson demand: Interaction between demand substitution, limited storage capacity and replenishment time uncertainty

Burnetas

Kanavetas

2018

Naval Research Logistics

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We consider a two-product inventory system with independent Poisson demands, limited joint storage capacity and partial demand substitution. Replenishment is performed simultaneously for both products and the replenishment time may be fixed or exponentially distributed. For both cases we develop a Continuous Time Markov Chain model for the inventory levels and derive expressions for the expected profit per unit time. We establish analytic expressions for the profit function and show that it satisfies decreasing differences properties in the order quantities, which allows for a more efficient algorithm to determine the optimal ordering policy. Using computational experiments, we assess the effect of substitution and replenishment time uncertainty on the order quantities and the profit as a function of the storage capacity.

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Joint replenishment model with substitution

Cited by 45 publications

References 27 publications

A systematic literature review on the joint replenishment problem solutions: 2006-2015

A systematic literature review on the joint replenishment problem solutions: 2006-2015

Optimal ordering quantities for substitutable deteriorating items under joint replenishment with cost of substitution

Inventory policies for two products under Poisson demand: Interaction between demand substitution, limited storage capacity and replenishment time uncertainty

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