TY - JOUR
T1 - Inventory positioning in multiple product supply chains
AU - Ioannou, George
AU - Prastacos, Gregory
AU - Skintzi, Georgia
PY - 2004/2
Y1 - 2004/2
N2 - In this paper we address the problem of inventory positioning, i.e., the determination of the supply chain node where inventory should be held, to minimize holding costs given a pre-specified order fill rate. A single-echelon inventory system with multiple products models the problem. The value of inventory is assumed to be an increasing function of the amount of processing performed at upstream nodes, while achieved fill-rates are dependent on the distance or time between the inventory storage and customer locations. We propose a novel analytical approach to solve the problem for the case of normally distributed demand that is based on iterative calculations of inventory holding costs at the various potential inventory locations.
AB - In this paper we address the problem of inventory positioning, i.e., the determination of the supply chain node where inventory should be held, to minimize holding costs given a pre-specified order fill rate. A single-echelon inventory system with multiple products models the problem. The value of inventory is assumed to be an increasing function of the amount of processing performed at upstream nodes, while achieved fill-rates are dependent on the distance or time between the inventory storage and customer locations. We propose a novel analytical approach to solve the problem for the case of normally distributed demand that is based on iterative calculations of inventory holding costs at the various potential inventory locations.
KW - Inventory management
KW - Supply chain design
UR - http://www.scopus.com/inward/record.url?scp=4043077937&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=4043077937&partnerID=8YFLogxK
U2 - 10.1023/B:ANOR.0000012281.60737.a1
DO - 10.1023/B:ANOR.0000012281.60737.a1
M3 - Article
AN - SCOPUS:4043077937
SN - 0254-5330
VL - 126
SP - 195
EP - 213
JO - Annals of Operations Research
JF - Annals of Operations Research
IS - 1-4
ER -