Inventory deployment and market area segmentation in a two-echelon distribution network design

Most of the logistics systems involve a multi-level distribution system structure due to value added by a multi-level configuration. Interactions of these levels, i.e. echelons, should be considered while making strategic decisions regarding the choice of the size, number and location of stocking sites as well as the tactical decision regarding the choice of inventory policy to be used. We analyze a two-echelon distribution network to characterize the market segmentation of each echelon and inventory deployment between the two-levels. Allocation of stock under a stochastic demand structure is considered simultaneously with warehousing and transportation decisions, which is an extension of the General Optimal Market Area (GOMA) Model developed by Erlenkotter. The distribution of inventory is investigated under different stock policies and the sensitivity of this distribution to various system parameters is analyzed.

Department dc:contributor.department

Massachusetts Institute of Technology. Operations Research Center

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2004

Author dc:creator

• Varol, Nebibe, 1980-

Advisor dc:contributor.advisor

• Donald B. Rosenfield.

• Operations Research Center.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/17728

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/17728