1964
DOI: 10.1287/mnsc.10.2.287
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On a Basic Class of Multi-Item Inventory Problems

Abstract: The paper evaluates and compares classes of multi-item inventory problems, where joint order of several items may save a part of the setup cost. A cost ratio and simple decision rule are determined for joint versus individual orders in specified cases. The comparisons call for the necessity of a new policy for reorder point-triggered random output multi-item systems. This policy, the "random joint order policy," operates through the determination of a reorder range within which several items can be ordered. Th… Show more

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Cited by 148 publications
(55 citation statements)
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“…On the stochastic demand models, there are two main replenishment policies: The can-order policy (COP), by Balintfy (1964), in which if any item reaches a must-order point, a replenishment order is made, and if the other items present inventory levels below a can-order point, they are included in the same order (Johansen & Melchiors, 2003;Balintfy, 1964;Khouja & Goyal, 2008). The periodic replenishment policy (PRP), by Atkins & Iyogun (1988), or (T, M) policy, considers a Poisson distributed demand, in which all products follow the same replenishment periodic interval T, and each one is replaced to a pre-determined inventory level M. Later, it has been considered that a set of products would follow the periodic review interval T, while other products that also should be replenished would follow a section of T (Atkins & Iyogun, 1988;Khouja & Goyal, 2008).…”
Section: ( )mentioning
confidence: 99%
“…On the stochastic demand models, there are two main replenishment policies: The can-order policy (COP), by Balintfy (1964), in which if any item reaches a must-order point, a replenishment order is made, and if the other items present inventory levels below a can-order point, they are included in the same order (Johansen & Melchiors, 2003;Balintfy, 1964;Khouja & Goyal, 2008). The periodic replenishment policy (PRP), by Atkins & Iyogun (1988), or (T, M) policy, considers a Poisson distributed demand, in which all products follow the same replenishment periodic interval T, and each one is replaced to a pre-determined inventory level M. Later, it has been considered that a set of products would follow the periodic review interval T, while other products that also should be replenished would follow a section of T (Atkins & Iyogun, 1988;Khouja & Goyal, 2008).…”
Section: ( )mentioning
confidence: 99%
“…An often used stochastic model is the canorder system. Balintfy (1964) was the first to propose the use of this system. In such a system, whenever item i's inventory position drops to its must-order point s i or lower, it triggers a replenishment action that raises the item's level to its order-upto-level S i .…”
Section: Joint Replenishmentmentioning
confidence: 99%
“…This stream of research has begun with the earliest work on joint replenishment with stochastic demand by Balintfy [4], who introduced the continuous review (s, c, S) joint ordering policy-also called the can-order policy. The policy operates as follows.…”
Section: Can-order Policiesmentioning
confidence: 99%
“…SJRP is the determination of replenishment and stocking decisions for N different items to minimize the expected total ordering, holding, and shortage costs per unit time in the presence of random demands and ordering cost structures with firstorder interaction. The first-order-interaction structure for ordering costs is defined as the setting where there are (i) a common fixed cost associated with a replenishment order regardless of its composition and (ii) an item-specific fixed cost for each item that is included in the replenishment order [4,10]. The ordering cost structure presents an opportunity to exploit the economies of scale in replenishment by ordering items jointly.…”
Section: Introduction and Literature Reviewmentioning
confidence: 99%