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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 Inc.
external identifiers
  • scopus:84989719165
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
2016-04-04 10:16:00
date last changed
2021-09-12 05:18:55
@article{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    = {{John Wiley & Sons Inc.}},
  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}},
  doi          = {{10.1002/1520-6750(199303)40:2<245::AID-NAV3220400208>3.0.CO;2-M}},
  volume       = {{40}},
  year         = {{1993}},
}