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Optimization of Order-up-to-S Policies in Two-Echelon Inventory Systems with Periodic Review

Axsäter, Sven LU (1993) In Naval Research Logistics 40(2). p.245-253
Abstract (Swedish)
Abstract in Undetermined

We consider an inventory system with one warehouse and N retailers. Transportation times are constant and the retailers face independent Poisson demand. Each facility applies a periodic review order-up-to-S policy. In case of shortages at the warehouse, orders for individual units are filled in the same order as the original demand at the retailers, i.e., according to a so-called virtual allocation scheme. Using that the considered policy is very similar to a continuous review one-for-one ordering policy, we are able to provide simple recursive procedures for exact evaluation of holding and shortage costs.
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Naval Research Logistics
volume
40
issue
2
pages
245 - 253
publisher
John Wiley & Sons
ISSN
0894-069X
DOI
10.1002/1520-6750(199303)40:2<245::AID-NAV3220400208>3.0.CO;2-M
language
English
LU publication?
yes
id
fbe178aa-5dc3-49c0-bc08-3b6bba047bda (old id 2199152)
date added to LUP
2011-10-26 15:03:21
date last changed
2016-04-16 07:40:53
@misc{fbe178aa-5dc3-49c0-bc08-3b6bba047bda,
  abstract     = {<b>Abstract in Undetermined</b><br/><br>
We consider an inventory system with one warehouse and N retailers. Transportation times are constant and the retailers face independent Poisson demand. Each facility applies a periodic review order-up-to-S policy. In case of shortages at the warehouse, orders for individual units are filled in the same order as the original demand at the retailers, i.e., according to a so-called virtual allocation scheme. Using that the considered policy is very similar to a continuous review one-for-one ordering policy, we are able to provide simple recursive procedures for exact evaluation of holding and shortage costs.},
  author       = {Axsäter, Sven},
  issn         = {0894-069X},
  language     = {eng},
  number       = {2},
  pages        = {245--253},
  publisher    = {ARRAY(0x8ea91d8)},
  series       = {Naval Research Logistics},
  title        = {Optimization of Order-up-to-S Policies in Two-Echelon Inventory Systems with Periodic Review},
  url          = {http://dx.doi.org/10.1002/1520-6750(199303)40:2<245::AID-NAV3220400208>3.0.CO;2-M},
  volume       = {40},
  year         = {1993},
}