The one warehouse and N retailers problem with uncertain demand


ŞENYİĞİT E. , AKKAN H.

International Conference on Information, Business and Education Technology (ICIBET), Beijing, China, 14 - 15 March 2013, vol.26, pp.249-252 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 26
  • City: Beijing
  • Country: China
  • Page Numbers: pp.249-252

Abstract

The major aim of this paper is to provide a solution to one warehouse and N retailers problem with uncertain demand. The 'static-dynamic uncertainty' strategy is used. The objective function is to minimize expected average total costs incurred by the total system comprising of retailers' replenishment cost, retailers' inventory holding cost, warehouse's replenishment cost, warehouse's inventory holding cost and lost-sale cost. We use integer-ratio policies. We generated 15 samples for each 5 retailers by using ProModel simulation software for Heuristic I and Heuristic II. The results of stochastic model compared with the deviation from optimum solution for these different heuristics.