Adaptive optimal model and algorithm for distributed inventory allocation based on Steiner tree

Shubin Si, Hongyan Dui

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This paper promotes an adaptive optimal model and algorithm for the distributed inventory system which includes one plant, m candidate distribution centers and time-varying customers. The inventory control policy (Q,s) is used in the distributed inventory system. First of all, we adopt theory of the weighted graph to build a mathematical model, which can convert general optimal mathematical model of the distributed inventory allocation to the weighted graph optimal model. Secondly, an adaptive optimal algorithm based on Steiner tree theory is presented to solve the mathematical model above. Finally, the results of numerical simulation show that the model and algorithm are effective. We discuss the sensitivity of potential cost reduction to the changes of inventory key parameters, such as demand of customers and the distribution center inventory capacity.

Original languageEnglish
Title of host publicationIEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management
Pages1684-1688
Number of pages5
DOIs
StatePublished - 2009
EventIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009 - Hong Kong, China
Duration: 8 Dec 200911 Dec 2009

Publication series

NameIEEM 2009 - IEEE International Conference on Industrial Engineering and Engineering Management

Conference

ConferenceIEEE International Conference on Industrial Engineering and Engineering Management, IEEM 2009
Country/TerritoryChina
CityHong Kong
Period8/12/0911/12/09

Keywords

  • Distributed inventory allocation
  • Mathematical model
  • Steiner tree theory
  • Weighted graph

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