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Centralized Inventory Control in a Two-Level Distribution System vith Poisson demand

Marklund, Johan LU (2002) In Naval Research Logistics 49. p.798-822
Abstract
This paper introduces a new replenishment policy for inventory control in a two-level distribution system consisting of one central warehouse and an arbitrary number of nonidentical retailers. The new policy is designed to control the replenishment process at the

central warehouse, using centralized information regarding the inventory positions and demand processes of all installations in the system. The retailers on the other hand are assumed to use continuous review (R,Q) policies. A technique for exact evaluation of the expected inventory holding and backorder costs for the system is presented. Numerical results indicate that there are cases when considerable savings can be made by using the new (R0, Q0) policy instead of a... (More)
This paper introduces a new replenishment policy for inventory control in a two-level distribution system consisting of one central warehouse and an arbitrary number of nonidentical retailers. The new policy is designed to control the replenishment process at the

central warehouse, using centralized information regarding the inventory positions and demand processes of all installations in the system. The retailers on the other hand are assumed to use continuous review (R,Q) policies. A technique for exact evaluation of the expected inventory holding and backorder costs for the system is presented. Numerical results indicate that there are cases when considerable savings can be made by using the new (R0, Q0) policy instead of a traditional echelon- or installation-stock (R, Q) policy. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
stochastic demand, centralized control, echelon stock, installation stock, distribution system, multiechelon, inventory systems
in
Naval Research Logistics
volume
49
pages
798 - 822
publisher
John Wiley & Sons
ISSN
0894-069X
language
English
LU publication?
yes
id
e280644f-1271-4256-aa7a-2c28a4a56096 (old id 629483)
date added to LUP
2008-02-07 11:51:00
date last changed
2016-04-16 05:48:16
@article{e280644f-1271-4256-aa7a-2c28a4a56096,
  abstract     = {This paper introduces a new replenishment policy for inventory control in a two-level distribution system consisting of one central warehouse and an arbitrary number of nonidentical retailers. The new policy is designed to control the replenishment process at the<br/><br>
central warehouse, using centralized information regarding the inventory positions and demand processes of all installations in the system. The retailers on the other hand are assumed to use continuous review (R,Q) policies. A technique for exact evaluation of the expected inventory holding and backorder costs for the system is presented. Numerical results indicate that there are cases when considerable savings can be made by using the new (R0, Q0) policy instead of a traditional echelon- or installation-stock (R, Q) policy.},
  author       = {Marklund, Johan},
  issn         = {0894-069X},
  keyword      = {stochastic demand,centralized control,echelon stock,installation stock,distribution system,multiechelon,inventory systems},
  language     = {eng},
  pages        = {798--822},
  publisher    = {John Wiley & Sons},
  series       = {Naval Research Logistics},
  title        = {Centralized Inventory Control in a Two-Level Distribution System vith Poisson demand},
  volume       = {49},
  year         = {2002},
}