We consider the classic N -stage serial supply systems with linear costs and stationary random demands. There are deterministic transportation leadtimes between stages, and unsatisfied demands are backlogged. The optimal inventory policy for this system is known to be an echelon base-stock policy, which can be computed through minimizing N nested convex functions recursively. To identify the ke...

We consider a single-item, periodic-review, serial, multi-echelon inventory system, with linear inventory holding and penalty costs. In order to facilitate shipment consolidation and capacity planning, we assume the system has implemented periodic batching: each stage is allowed to order at given equidistant times. Further, for each stage except the most downstream one, the reorder interval is ...

In today’s dynamic market numerous dynamic influencing factors have seriously aggravates the difficulties of inventory planning of the complex distribution networks. This paper proposes a simulation-based hybrid approach for the optimization of the inventory policies in complex distribution networks. The initial multi-echelon inventory policies are handed over to a simulation model, which is ca...

In this work we deal with multilevel integrated distribution problems and in particular, we analyse the management of inventories of final goods in the distribution system. We present a survey of methods proposed in the recent literature devoted to the integration of inventory management systems. Starting from the concept of echelon inventory position we present an approach for the optimal flow...

We consider the classic continuous-review N stage serial inventory system with a homogeneous Poisson demand arrival process at the most downstream stage (Stage 1). Any shipment to each stage, regardless of its size, incurs a positive fixed setup cost and takes a positive constant lead time. The optimal policy for this system under the long-run average cost criterion is unknown. Finding a good w...

This paper reviews inventory models with multiple supply options and discusses their contribution to supply chain management. After discussing strategic aspects of supplier competition and the role of operational flexibility in global sourcing, inventory models which use several suppliers in order to avoid or reduce the effects of shortage situations are outlined. Further, related inventory pro...

A two-stage inventory system is considered where Poisson demand occurs at Stage 1, and Stage 1 replenishes its inventory from Stage 2, which in turn orders from an outside supplier with unlimited stock. Each shipment, either to Stage 2 or to Stage 1, incurs a fixed setup cost. Under the assumption that the supply leadtime at Stage 2 is zero, we characterize a simple heuristic policy whose long-...