An Innovative Heuristic in Multi-Item Replenishment Problem for One Warehouse and N Retailers
Abstract: Joint replenishment
problem (JRP) is a type of inventory model which aims to minimize the total
inventory cost consisting
of major ordering
cost, minor ordering
cost and inventory holding cost.
Different from previous
papers, this study
considers one warehouse,
multi items and N
retailers. An innovative
heuristic approach is
developed to solve
the problem. In this
paper, we consider
a multi echelon
inventory system and
seek to find
a balance between
the order cost and the inventory holding costs at each installation. The
computational results show that the innovative heuristic provides a near exact
optimal solution, but is more efficient in terms of the computational time and
the iteration number.
Keywords: Inventory, joint
replenishment problem (JRP), single warehouse multiple retailers, multi-items,
heuristic
Author: Yugowati Praharsi,
Yessica Nataliani, Hui-Ming Wee
Journal Code: jptindustrigg140012
