Branch Warehouse Replenishment Using Equalized Shares

A warehouse replenishment technique - Equalized Shares - is a dynamic demand model similar to Brown's Fair Shares technique. Both techniques are based on the equalization of runout times rule. Whereas Fair Shares equalizes the runout time of one item in all branch warehouses, Equalized Shares e...

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Bibliographic Details
Published in:Production and inventory management journal 1988-04, Vol.29 (2), p.27
Main Authors: Taylor, Sam G, Bolander, Steven F
Format: Article
Language:English
Subjects:
Inventory management
Requirements
Shipping
Warehouses
Warehousing
Online Access:Get full text
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Summary:A warehouse replenishment technique - Equalized Shares - is a dynamic demand model similar to Brown's Fair Shares technique. Both techniques are based on the equalization of runout times rule. Whereas Fair Shares equalizes the runout time of one item in all branch warehouses, Equalized Shares equalizes the runout time of all items stocked in one warehouse. Thus, the planned inventories of all items in a warehouse will reach their time-phased order points simultaneously, just as a replenishment shipment arrives. Equalized Shares may prove beneficial to firms following the current trend of reducing manufacturing lot sizes. Its principal benefit is better management of the inventory mix at branch warehouses. This leads to: 1. lower inventories at branch warehouses, 2. improved stock availability, and 3. fewer emergency shipments.
ISSN:0897-8336