This paper presents an allocation model for a perishable product, distributed from a regional center to a given set of locations with random demands. We consider the combined problem of allocating the available inventory at the center while deciding how these deliveries should be performed. Two types of delivery patterns are analyzed: the first pattern assumes that all demand points receive individual deliveries; the second pattern subsumes the frequently occurring case in which deliveries are combined in multistop routes traveled by a fleet of vehicles. Computational experience is reported.
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Federgruen et al. (1986) studied this question.
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