Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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Optimal Sizing of In-Plant and Leased Storage Spaces under a Randomized Storage Policy

임의 저장방식 하에서 기업 내 저장공간과 외부의 임차공간에 대한 최적 규모 결정

  • Lee, Moon-Kyu (Department of Industrial and Systems Engineering, Keimyung University)
  • 이문규 (계명대학교 산업시스템공학과)
  • Published : 2004.12.31
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Abstract

This paper considers a trade-off effect between in-house storage space and leased storage space in generic warehouses operated under a randomized storage assignment policy. The amount of in-house storage space is determined based on the law of large numbers satisfying a given service level of protection against space shortages. Excess space requirement is assumed to be met via leased storage space. A new analytic model is formulated for determining the excess space such that the total cost of storage space is minimized. Finally, computational results are provided for the systems where the standard economic-order-quantity inventory model is used for all items.

Keywords

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