Article ID: | iaor20082893 |
Country: | Netherlands |
Volume: | 35 |
Issue: | 5 |
Start Page Number: | 561 |
End Page Number: | 566 |
Publication Date: | Sep 2007 |
Journal: | Operations Research Letters |
Authors: | Sobel Matthew J., Hu Qiaohai (Joice) |
We study a Clark and Scarf multi-echelon inventory model with the objective of optimizing the expected present value of dividends. A counterexample shows that generally there is no optimal echelon base-stock policy if there are financial constraints and two or more echelons.