Optimizing Inventory in a Multi-echelon Multi-item Supply Chain with Time-based Customer Service Level Agreements
نویسندگان
چکیده
We present a continuous-review inventory model for tactical planning in a multi-item, multi-echelon service parts distribution system with time-based service level requirements. Our goal is to determine base stock levels for all items at all locations so that the service level agreements are met at minimum investment. We present exact time-based fill rate expressions for each item and efficient methods for their computation. We develop a greedy algorithm to find near-optimal solutions to largescale problems quickly and a Lagrangian-based approach that provides near-optimal solutions and good lower bounds with increased computational effort.
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