Abstract
Coordinated timing of replenishments within supply systems can provide high system effectiveness when compared to noncoordinated supply systems. In this work coordination of supply chain inventory replenishments will be based on integerratio policies. In integerratio policy the ratio of warehouse inventory replenishment interval to retailer inventory replenishment interval is an integer or an integer reciprocal for all retailers. The best known integerratio policy is poweroftwo policy in which all integerratios are powers of two. In integerpartitioned powerofU policies all warehouse replenishment interval to retailer replenishment interval ratios will be among 1, 2, 3,...,U1, U, 2U, 3U,...,(U1)U, UU, 2UU, 3UU...,UUU,... or among the reciprocals of such integers. Two integerpartitioned powerofU policy variants are developed. In the first variant the aggregate inventory related total cost for all retailers with nonunity integerratios is assumed to be higher than the respective cost for the warehouse and all retailers with unity integerratios. In the second variant the aggregate inventory related total cost for all retailers with nonunity integerratios is assumed to be lower than the respective cost for the warehouse and all retailers with unity integerratios. With integerpartitioned powerofU policies it is possible to construct integerratio lotsizing solutions with higher lower bound of maximum effectiveness than in poweroftwo policy. Effectiveness results for integerpartitioned powerofU policies for distribution systems have been developed. Both inventory replenishment cost and inventory holding cost can be based on or approximated by affine or power cost functions. Holding cost reallocation is shown to apply in the case of affine cost functions so optimal integerratio policies can be developed. Power cost functions can be transformed into respective affine cost functions so holding cost reallocation is possible for power cost functions, too. Effectiveness results for poweroftwo policy have been developed for four cost function type combinations. Methods for finding optimal or at least nearoptimal poweroftwo lotsizing solutions are presented. Effectiveness results for integerpartitioned powerofU policies for distribution systems have also been developed. In manytoone assembly systems are several upstream facilities supplying one downstream facility facing the market demand. It will be shown that the prerequisites for the use of different integerpartitioned powerofU policies described above are met so it is possible to use these policies on manytoone supply systems, too.
Original language  English 

Qualification  Doctor's degree 
Awarding Institution 

Supervisors/Advisors 

Publisher  
Print ISBNs  9789526040912 
Publication status  Published  2011 
MoE publication type  G4 Doctoral dissertation (monograph) 
Keywords
 costs
 effectiveness
 logistics
 supply chain
 kustannukset
 logistiikka
 tehokkuus
 toimitusketju
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Karrus, K. E. (2011). Policy variants for coordinating supply chain inventory replenishments. Aalto University. http://urn.fi/URN:ISBN:9789526040912