Article ID: | iaor20084266 |
Country: | Netherlands |
Volume: | 177 |
Issue: | 1 |
Start Page Number: | 310 |
End Page Number: | 324 |
Publication Date: | Feb 2007 |
Journal: | European Journal of Operational Research |
Authors: | Hill Roger M., Olsson Ralph J. |
Keywords: | queues: applications |
We consider a two-echelon inventory system with a number of non-identical, independent ‘retailers’ at the lower echelon and a single ‘supplier’ at the upper echelon. Each retailer experiences Poisson demand and operates a base stock policy with backorders. The supplier manufactures to order and holds no stock. Orders are produced, in first-come first-served sequence, with a fixed production time. The supplier therefore functions as an