The one warehouse and N retailers problem with uncertain demand

The major aim of this paper is to provide a solution to one warehouse and N retailers problem with uncertain demand. The 'static-dynamic uncertainty' strategy is used. The objective function is to minimize expected average total costs incurred by the total system comprising of retailers' replenishment cost, retailers' inventory holding cost, warehouse's replenishment cost, warehouse's inventory holding cost and lost-sale cost. We use integer-ratio policies. We generated 15 samples for each 5 retailers by using ProModel simulation software for Heuristic I and Heuristic II. The results of stochastic model compared with the deviation from optimum solution for these different heuristics