Linear and nonlinear estimation of the cost function of a two-echelon inventory system.pdf
Creators: name: Seifbarghy, Mehdi
name: Maghsood Amiri
name: Heydari, Mostafa
Publisher: name: figshare
Year: 2020
Subjects: subject: 90603 Industrial Electronics
subject: FOS: Electrical engineering, electronic engineering, information engineering
subject: FOS: Electrical engineering, electronic engineering, information engineering
subject: 90505 Infrastructure Engineering and Asset Management
subject: FOS: Civil engineering
subject: FOS: Civil engineering
subject: 91599 Interdisciplinary Engineering not elsewhere classified
subject: FOS: Other engineering and technologies
subject: FOS: Other engineering and technologies
subject: 91003 Machine Tools
subject: 91004 Machining
subject: 91099 Manufacturing Engineering not elsewhere classified
subject: 91005 Manufacturing Management
subject: 91006 Manufacturing Processes and Technologies (excl. Textiles)
subject: 91007 Manufacturing Robotics and Mechatronics (excl. Automotive Mechatronics)
subject: 91008 Manufacturing Safety and Quality
subject: 91199 Maritime Engineering not elsewhere classified
subject: FOS: Environmental engineering
subject: FOS: Environmental engineering
subject: 91299 Materials Engineering not elsewhere classified
subject: FOS: Materials engineering
subject: FOS: Materials engineering
subject: Mechanical Engineering
subject: FOS: Mechanical engineering
subject: FOS: Mechanical engineering
subject: 91399 Mechanical Engineering not elsewhere classified
subject: 90304 Medical Devices
subject: FOS: Medical engineering
subject: FOS: Medical engineering
subject: 90404 Membrane and Separation Technologies
subject: FOS: Chemical engineering
subject: FOS: Chemical engineering
subject: 91207 Metals and Alloy Materials
subject: 91306 Microelectromechanical Systems (MEMS)
subject: 90604 Microelectronics and Integrated Circuits
subject: 91009 Microtechnology
subject: 91404 Mineral Processing/Beneficiation
subject: 91405 Mining Engineering
subject: 91102 Naval Architecture
subject: 90904 Navigation and Position Fixing
subject: 90405 Non-automotive Combustion and Fuel Engineering (incl. Alternative/Renewable Fuels)

description: The inventory system under consideration consists of one central warehouse and a few nonidentical retailers controlled by a continuous review inventory policy (R, Q). The retailers face an independent Poisson demand. Order transportation time from the central warehouse to each retailer is assumed to be constant. Also, the lead time for replenishing orders from an external supplier is assumed to be constant for the warehouse. Unsatisfied demands are assumed to be lost at the retailers and unsatisfied retailer orders are backordered at the warehouse. The cost function of the system was estimated utilizing a Response Surface Method (RSM) in the case of four retailers, and, in this regard, two linear and nonlinear regression models were developed. The optimal reorder points for given batch sizes in all installations were obtained from optimizing the estimated cost function. The estimation accuracy was assessed through simulation. The results indicate that the nonlinear regression model outperforms the linear one