A New Heuristic for one Warehouse and N Retailers Problem

Abstract We considered an inventory/distribution system containing one warehouse and N retailers. There are a lot of heuristics in the literature for this problem. We proposed a new heuristic to this problem by this paper. The objective of this paper is to min imize supply chain costs of the whole system by a new heuristic. The main idea of heuristic is to compare replenishment cost with inventory holding cost. In order to analyze the effectiveness of the new heuristic, we compared it with Abdul-Jalbar's heuristic. We generated 100 different test problems. The computational results showed that new heuristic outperforms Abdul-Jalbar's heuristic (1.923%).