Article ID: | iaor19921252 |
Country: | United Kingdom |
Volume: | 42 |
Issue: | 11 |
Start Page Number: | 1025 |
End Page Number: | 1030 |
Publication Date: | Nov 1991 |
Journal: | Journal of the Operational Research Society |
Authors: | Chang Pao-Long, Lin Chin-Tsai |
Keywords: | location |
This paper deals with a single-period, single-product inventory model with seval individual sources of demand. It is a multi-location problem with an opportunity for centralization. Two types of inventory system are considered in this paper: the decentralized system and the centralized system. The aim of this paper is to extend Eppen’s model by adding the consideration of transportation cost to constitute a new inventory model. With this new inventory model we prove three theorems that include the results of Eppen’s model.