Analyzing divergent logistic networks with local (RS) inventory control

This paper deals with divergent logistic networks where the inventory at each node is controlled using a periodic review strategy with order-up-to level. An approximate method is presented to analyse the network performance (service levels, mean physical stock). The method is tested on a range of 2-echelon and 3-echelon networks by comparison to results from Monte Carlo simulation. The paper concludes that the approximation accuracy is sufficient for global network design in many practical situations.