Supply chain management: Optimizing order strategies of two-echelon distribution system

Supply chain management: Optimizing order strategies of two-echelon distribution system

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Article ID: iaor20041415
Country: China
Volume: 17
Issue: 4
Start Page Number: 303
End Page Number: 308
Publication Date: Jan 2002
Journal: Journal of Systems Engineering and Electronics
Authors: , ,
Keywords: information, inventory
Abstract:

The paper thinks of the two-echelon distribution system containing a single supplier, one distribution center (DC) and some retailers as a supply chain, with object to minimize the total cost in the supply chain. The paper assumes that the DC and retailers perform periodic review and order strategies, and their leadtimes are constants negotiated in advance, but the distribution functions of the demand at the retailers are a class of functions that their convolutions are closed. The paper gets optimum order policies, and gives the simple solution method under these assumptions.

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