Operating distribution center networks at scale: Efficient formulations and policies
成果类型:
Article; Early Access
署名作者:
Li, Chenxi; Zhang, Aiqi; Liu, Sheng; Qi, Wei; Ran, Lun; Wu, Peng
署名单位:
Beijing Institute of Technology; Wilfrid Laurier University; University of Toronto; Tsinghua University; Sichuan University
刊物名称:
PRODUCTION AND OPERATIONS MANAGEMENT
ISSN/ISSBN:
1059-1478
DOI:
10.1177/10591478261483367
发表日期:
2026
关键词:
Robust Optimization
Inventory models
demand
replenishment
transshipment
INFORMATION
摘要:
How should retailers and sellers distribute inventory across a large network of (potentially hundreds of) distribution centers? Motivated by the emerging challenges of inventory allocation facing volatile demand, we develop distributionally robust network inventory management policies with cross-fulfillment using a scenario-based approach that is adaptable to feature information and demand correlation. We analytically demonstrate the value of scenario modeling for a two-location newsvendor problem. The key technical development is a computationally efficient linear programming formulation for large networks, which we further incorporate into a dynamic inventory policy combined with look-ahead approximation. We validate the superior performance of the proposed policies using real-world transaction data from a leading logistics service provider and a major retailer in China. The developed policy outperforms existing data-driven approaches and can save up to 19% of operating costs over the current policy employed by the company.