Uniform distribution of inventory positions in two-echelon periodic review systems with batch-ordering policies and interdependent demands

Uniform distribution of inventory positions in two-echelon periodic review systems with batch-ordering policies and interdependent demands

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Article ID: iaor20031299
Country: Netherlands
Volume: 140
Issue: 3
Start Page Number: 648
End Page Number: 654
Publication Date: Aug 2002
Journal: European Journal of Operational Research
Authors: , ,
Abstract:

We consider a two-level inventory system in which there are one supplier and multiple retailers. The retailers face stochastic, interdependent customer demands. Each location employes a periodic-review (R,nQ), or lot-size reorder point, inventory policy. We show that each location's inventory positions are stationary and the stationary distribution is uniform and independent of any other's.

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