A lower bound and an efficient heuristic for multistage multiproduct distribution systems

Article Abstract:

An algorithm is proposed for the solution of the lot-sizing problem in a multistage, multifacility pure distribution network. An en echelonholding cost rate per item distributed is evident for each facility, which, in turn, determines a set up cost. The last facility in the network experiences a continuous deterministic demand. The proposed O(rd log r) algorithm, where the number of end facilties is denoted by r and the maximum distribution depth by d, decomposes the network into facilities-in-series problems, thus resulting ina lower bound. The maximum decomposed continuous solution, which provides the lower bound used to solve the distribution problem, is then obtained by settingup a cost allocation procedure. The resulting power-of-two heuristic has a maximum worst case performance of 2% above optimal.

Distribution of goods, Distribution (Commerce)

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Fill-rate optimization in a one-warehouse N-identical retailer distribution system

Article Abstract:

This study, employing the approximation technique of Dewermeyer and Schwarz, examines system fill-rate as applied to retailer and warehouse safety stocks, to determine properties of the fill-rate with the highest level of safety stock policy. The intersection between the fill-rate policy line and the safety stock budget line represents the optimal safety stock policy. Management may base heuristics on the given properties of fill-rate policy lines.

Management, Heuristic programming

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Optimal residence times for a batch biomass-to-methane conversion system

Article Abstract:

Roughly one quarter of U.S. demand for methane gas will be met through biomass conversion methods. Simultaneously, only a small amount of research has been done to economically develop and operate a production facility for such processes. The main problem with operation is to decide the optimal residence times for batches in the anaerobic digester to optimize total output over a fixed planning horizon.

Research, Management science, Economic aspects, Methane, Recycling (Waste, etc.), Recycling, Biomass energy, Optimal stopping (Mathematical statistics)

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