Journal of Northeastern University ›› 2010, Vol. 31 ›› Issue (5): 617-620.DOI: -

• OriginalPaper • Previous Articles     Next Articles

Optimal control model of bilevel replenishment for distribution system in network marketing

Liu, Bao-Zheng (1); Wang, Ding-Wei (1)   

  1. (1) School of Information Science and Engineering, Northeastern University, Shenyang 110004, China
  • Received:2013-06-20 Revised:2013-06-20 Online:2010-05-15 Published:2013-06-20
  • Contact: Liu, B.-Z.
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Abstract: A regional distribution system including a distribution center and multiple retailers was studied, where the demand all replenishing intervals complied with the random variables of a certain probability distribution. Each retailer can decide its own optimal demand via replenishing in time independently with fixed replenishing intervals. So, the distribution center shall deliver goods to each retailer regularly, i.e., the same to the fixed replenishing intervals. In view of that the demand of a retailer is in uniform distribution in a replenishing interval, where the demand is assumed to be even, the control strategres to make the replenishment optimal for retailers and make the purchase of goods optimal for the distribution center were both proposed through optimization of costs. A numerical example was given to verify the control strategies proposed.

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