Article ID: | iaor20105598 |
Volume: | 58 |
Issue: | 4-Part-1 |
Start Page Number: | 1017 |
End Page Number: | 1022 |
Publication Date: | Jul 2010 |
Journal: | Operations Research |
Authors: | Huh Woonghee Tim, Janakiraman Ganesh, Nagarajan Mahesh |
Keywords: | base stock systems |
We study a periodically reviewed multiechelon serial inventory system with a capacity constraint on the order quantity at every stage. Under echelon base-stock policies, we demonstrate a simple sample-path result that maps the echelon shortfalls in the serial system to the shortfalls of suitably defined single-stage systems. Because the shortfall processes of single-stage systems are well understood, our result allows us to reinterpret results in the literature on the stability and regeneration times of such multiechelon systems in a simpler fashion with weaker assumptions.