ABSTRACT

In this chapter, we address an important situation in which it makes sense to coordinate the control of different stock-keeping units. Specifically, the items are all stocked at the same location and they share a common supplier or mode of transportation. Alternatively, they share a common production facility. In the latter case, there is the added complexity of a finite productive capacity to be shared each period. Conceptually, the items to be coordinated could be the same item at different, parallel locations. We emphasize the word parallel because coordination in a multiechelon (serial) situation (one location feeding stock into another) is quite different. The latter situation will be addressed in Chapter 11.