Stock allocation in general multi-echelon distribution systems with (R, S) order-up-to-policies

Stock allocation in general multi - echelon distribution systems with ( R , S ) order - up - to - policies

In this paper we analyze stock allocation policies in general N-echelon distribution systems, where it is allowed to hold stock at all levels in the network. The goal is to achieve differentiated target customer service levels (fill rates). Various allocation rules and accompanying numerical methods that have already been developed for smaller networks are extended and compared in an extensive ...

Allocation policies in general multi - echelon distribution systems with ( R , S ) order - up - to - policies

In this paper we analyze stock allocation policies in general N-echelon distribution systems, where it is allowed to hold stock at all levels in the network. The goal is to achieve differentiated target customer service levels (fill rates). Various allocation rules and accompanying numerical methods that have already been developed for smaller networks are extended and compared in an extensive ...

Routing and Inventory Allocation Policies in Multi-Echelon Distribution Systems

Evaluating Echelon Stock (R, nQ) Policies in Serial Production/Inventory Systems with Stochastic Demand

T his paper studies echelon stock (R, nQ) policies in serial production/inventory systems with stochastic demand. We provide a recursive procedure to compute the steady state echelon inventory levels of the systems, which can be used to evaluate the long-run average holding and backorder costs as well as other performance measures. The procedure is based upon an observation of a relationship be...

Near-Optimal Echelon-Stock (R, nQ) Policies in Multistage Serial Systems

We study echelon-stock (R, nQ) policies in a multistage, serial inventory system with compound Poisson demand. We provide a simple method for determining near-optimal control parameters. This is achieved in two steps. First, we establish lower and upper bounds on the cost function by overand under-charging a penalty cost to each upstream stage for holding inadequate stock. Second, we minimize t...