Simple evaluation of echelon stock (R,Q) policies for two-level inventory systems

Simple evaluation of echelon stock (R,Q) policies for two-level inventory systems

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Article ID: iaor19992183
Country: United States
Volume: 29
Issue: 8
Start Page Number: 661
End Page Number: 669
Publication Date: Aug 1997
Journal: IIE Transactions
Authors:
Abstract:

A two-level inventory system with one warehouse and N retailers is considered. Leadtimes (transportation times) are constant, and the retailers face different compound Poisson demand processes. All facilities apply continuous review echelon stock (R,Q) policies with different reorder points and batch quantities. We provide a simple method for exact evaluation of holding and shortage costs.

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