Logistics III

TE09.1 Inventory Models for Deteriorating Items with Shortages & Two Warehouses

• Jinn-Tsair Teng; National Tsing Hua University, Dept. of IE & EM, hsinchu, Taiwan, 30043 , ROC; jteng@ie.nthu.edu.tw
• Maw-Sheng Chern; National Tsing Hua University, Dept. of IE & EM, Hsinchu, 30043 , ROC;

In contrast to the traditional deterministic 2-warehouse inventory model with shortages at the end of each replenishment cycle, we propose an alternative model which ends without shortages in each cycle. In addition, we investigate the conditions under which a 2-warehouse inventory model is less expensive to operate than a single-warehouse model.

TE09.2 A Closed Queueing Network Model for the Performance Evaluation of the Multi-Echelon Repair System

• Hyo-Seong Lee; Kyung Hee University, 1 Seocheon, Kiheung, Yongin, Kyunggi-do, 449-701 , Korea; hslee@nms.kyunghee.ac.kr
• Chanwoo Park; Kyung Hee University, 1 Seocheon, Kiheung, Yongin, Kyunggi-do, 449-701 , Korea; redlionking@hanmail.net
• Changgon Kim; Kyung Hee University, 1 Seocheon, Kiheung, Yongin, Kyunggi-do, 449-701 , Korea; cgkim@suji.kmi.re.kr

An approximate method is developed to obtain the performance measures for the multi-echelon repair system. The system is modeled as a closed queueing network and is analyzed using a product-form approximation method. A recursive technique is used to solve the sub-network.

TE09.3 An Empirical Study of Service Differentiation for Weapon System Service Parts

• Vinayak V. Deshpande; Purdue University, 562 Krannert Bldg., West Lafayette, IN 47907; deshpandev@mgmt.purdue.edu
• Morris A. Cohen; University of Pennsylvania, The Wharton School, Dept. of OPIM, 1300 SH-DH, Philadelphia, PA 19104-6366; cohen@grace.wharton.upenn.edu
• Karen L. Donohue; University of Minnesota, Dept. of OMS, 3-150 CSOM, The Carlson Sch., Minneapolis, MN 55455-9940; kdonohue@csom.umn.edu

We conduct an empirical study of weapon system service parts to provide some important insights into how companies can effectively manage service parts with heterogeneous attributes and service requirements. We test the relationship between part attributes and performance, i.e., response time and fillrates, in the military's current logistics system.

TE09.4 Distribution Structures for On-Line Food Retailers

• Rene M. B. De Koster; Erasmus University Rotterdam, Rotterdam Sch. of Mgmt., PO Box 1738, Rotterdam, 3000 DR , The Netherlands; rkoster@fbk.eur.nl,, http://www.fbk.eur.nl/FBK/VG6

Although on-line sales are booming, they still lag in the food sector. Both e-commerce-only companies and companies with both on-line activities and ordinary stores make losses. We study the distribution structure of these companies and argue which distribution structure is most likely to become profitable in the future.