A STATIONARY PROBLEM FOR A MULTI-COMMODITY INVENTORY SYSTEM WITH INTERACTING SET-UP COSTS.
FLORIDA UNIV GAINESVILLE DEPT OF INDUSTRIAL AND SYSTEMS ENGINEERING
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The stationary characteristics of a periodic review multi-commodity inventory problem are investigated. The analysis is carried first for a two-commodity system and is then extended to an n-commodity system n or 1. The stochastic model assumes a dyadic replenishment policy either nothing is ordered or all commodities are ordered simultaneously with proportional costs plus a single set-up cost. For n 2 and when the demands for the commodities are independently and exponentially distributed, the cost structure of the problem is analyzed and in one numerical example the optimal operating costs for individual and joint ordering policies are compared. Author
- Operations Research