Optimization of order-up-to-S policies for two-level inventory systems with compound Poisson demand

Optimization of order-up-to-S policies for two-level inventory systems with compound Poisson demand

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Article ID: iaor19981079
Country: Netherlands
Volume: 81
Issue: 1
Start Page Number: 143
End Page Number: 153
Publication Date: Feb 1995
Journal: European Journal of Operational Research
Authors:
Abstract:

We consider a two-level inventory system with one warehouse and N retailers. Leadtimes are constant, and the retailers face different compound Poisson demand processes. All facilities apply order-up-to-S replenishment policies. We show how to evaluate holding and shortage costs exactly.

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