A two-echelon inventory system with priority shipments

A two-echelon inventory system with priority shipments

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Article ID: iaor1993880
Country: United States
Volume: 38
Issue: 8
Start Page Number: 1140
End Page Number: 1153
Publication Date: Aug 1992
Journal: Management Science
Authors:
Keywords: stochastic processes
Abstract:

A two-echelon system for spare parts is analyzed. The system allows the use of priority inventory pooling to expedite service when a stock-out occurs. First, a tractable aggregate model is derived. This model is then disaggregated to approximate the performance of the exact system. Results of computer tests are also presented.

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