In many multi-echelon inventory systems, the lead times are random variables. A common and reasonable assumption in most models is that replenishment orders do not cross, which implies that successive lead times are correlated. However, the process that generates such lead times is usually not well defined, which is especially a problem for simulation modeling. In this paper, we use results fro...

We present a continuous-review inventory model for tactical planning in a multi-item, multi-echelon service parts distribution system with time-based service level requirements. Our goal is to determine base stock levels for all items at all locations so that the service level agreements are met at minimum investment. We present exact time-based fill rate expressions for each item and efficient...

Number: 007-0663 An Inventory Sharing and Allocation Method for a Multi-location Service Parts Logistics Network with Time-based Service Levels Erhan Kutanoglu Graduate Program in Operations Research and Industrial Engineering Department of Mechanical Engineering The University of Texas at Austin [email protected] POMS 18th Annual Conference Dallas, Texas, U.S.A. May 4 to May 7, 2007 Abstr...

In this article we present an effective mixed-integer linear programming (MILP) formulation for design of a multi-echelon stochastic inventory system with uncertain customer demands. In You and Grossmann [2010] a three-echelon supply chain with inventories under uncertainty is presented. In that supply chain, the location of the plants and the customer demand zones (CDZ) are known. Potential di...

We derive approximations for the service levels of two-echelon inventory systems with lost sales and Poisson demand. Our method is simple and accurate for a very broad range of problem instances, including cases with both high and low service levels. In contrast, existing methods only perform well for limited problem settings, or under restrictive assumptions.

A major issue in supply chain inventory management is the coordination of inventory policies adopted by different members in a supply chain including suppliers, manufacturers, distributors, etc. This paper presents a fractal-based approach for inventory management in order to minimize inventory costs and smooth material flows between supply chain members while responsively meeting customer dema...

Inventory replenishment rules contribute significantly to the bullwhip effect and inventory instability in supply chains. Smoothing replenishment rules have been suggested as a mitigation solution for the bullwhip effect but dampening the bullwhip effect might increase inventory instability. This paper evaluates a real-time inventory replenishment system denoted as SPC that utilizes a control c...