Template-Type: ReDIF-Paper 1.0
Author-Name: Kleijn, M.J.
Author-Name-Last: Kleijn
Author-Name-First: Marcel
Author-Name: Dekker, R.
Author-Name-Last: Dekker
Author-Name-First: Rommert
Author-Person: pde16
Title: Using break quantities for tactical optimisation in multistage distribution systems
Abstract: In this chapter we discuss a tactical optimisation problem that arises in a multistage distribution system where customer orders can be delivered from any stockpoint. A simple rule to allocate orders to locations is a break quantity rule, which routes large orders to higher-stage stockpoints and small orders to end-stockpoints. A so-called break quantity determines whether an order is small or large. We present a qualitative discussion on the implications of this rule for the marketing process, and a qualitative and quantitative analysis on the implications for the transportation and inventory costs. Furthermore, we present a case study for a company that implemented a break quantity rule. Finally, in the last section the main results are summarised.
Creation-Date: 1997-01-01
File-URL: https://repub.eur.nl/pub/1404/feweco19971007144500.pdf
File-Format: application/pdf
Series: RePEc:ems:eureir
Number: EI 9737/A
Keywords: break quantity rule, distribution systems, inventory, marketing, transportation
Handle: RePEc:ems:eureir:1404