| Article ID: | iaor20061909 |
| Country: | China |
| Volume: | 26 |
| Issue: | 5 |
| Start Page Number: | 504 |
| End Page Number: | 507 |
| Publication Date: | May 2005 |
| Journal: | Journal of Northeastern University |
| Authors: | Guan Zhimin, L. Qin L, Ma Qinhai |
| Keywords: | organization, distribution |
Two profit functions are derived separately for the manufacturers and distributors in the system, with relevant optimum inventory-decision models developed for the system and solutions given step by step to them. With an example given, not only the applicability of the models is described but how the change in the demand uncertainty which is characterized by the coefficient of demand variance affects the total profit level and service level of the distribution system is analyzed, thus providing an important reference for the inventory decision to be made for similar distribution systems.