Spreadsheet Heuristic for Stochastic Demand Environments to Solve the Joint Replenishment Problem

Turkay B., ALPTEKİN S. E.

World Congress on Engineering (WCE 2013), London, Kanada, 3 - 05 Temmuz 2013, ss.506-507 identifier identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Basıldığı Şehir: London
  • Basıldığı Ülke: Kanada
  • Sayfa Sayıları: ss.506-507
  • Galatasaray Üniversitesi Adresli: Evet

Özet

In this paper, a new adaptation of spreadsheet heuristic for stochastic demand environment is presented. The simplicity of application of spreadsheet method and its efficiency enable us to consider its modified version for the joint replenishment problem under stochastic demand. The principle of the procedure is to find a balance between the replenishment and holding costs for jointly replenished items. The heuristic performance is tested on real business data and we found out that it performs well in comparison with well known RAND heuristic. Owing to the simplicity and effectiveness of the proposed algorithm, we believe that it can be applicable in retail industry.