Clark and Scarf [1960] characterize optimal policies in a two-echelon, twolocation inventory model. We extend their result to the infinite-horizon case (for both discounted and average costs). The computations required are far easier than for the finite horizon problem. Further simplification is achieved for normal demands. We also consider the more interesting case of multiple locations at the...

In this paper, the cost function for a three-echelon inventory system with two warehouses is derived. Transportation times are constant and retailers face independent Poisson demand. Replenishments are one-for-one. The lead time of a retailer is determined not only by the constant transportation time but also by the random delay incurred due to the availability of stock at the warehouses. We co...

In this paper, an inventory management framework and deterministic costs models within the context of this framework are structured for effective supply chain under deterministic and fuzzy environment. In this regard, we propose a bi-echelon multi-product supply chain in which a central manufacturing firm (lower echelon) with warehouse space limitation is fed through different suppliers (upper ...

This paper demonstrates optimal policies for capacitated serial multiechelon production/inventory systems. Extending the Clark and Scarf (1960) model to include installations with production capacity limits, we demonstrate that a modified echelon base-stock policy is optimal in a two-stage system when there is a smaller capacity at the downstream facility. This is shown by decomposing the dynam...

The inventory management of multi-echelon repairable items systems is a major problem as these items are relatively expensive and slow-moving, so, inventory management can be a real problem due to mathematical complexities. In this work, a study was performed in a complex high-value products manufacturer, whose repairable items are both expensive and critical. Data of parts’ failure, storage an...

This paper studies a periodic-review, serial inventory system in which echelon r nQ T policies are implemented. Under such a policy, each stage reviews its inventory in every T period and orders according to an echelon r nQ policy. Two types of fixed costs are considered: one is associated with each order batch Q, and the other is incurred for each inventory review. The objective is to find the...

Lateral transshipments within an inventory system are stock movements between locations of the same echelon. These transshipments can be conducted periodically at predetermined points in time to proactively redistribute stock, or they can be used reactively as a method of meeting demand which cannot be satisfied from stock on hand. The elements of an inventory system considered, e.g. size, cost...

Members of supply chain carry inventory for different purposes. To effectively reduce the cost of inventory, information sharing mechanism is the key. The inventory can be managed in two ways in supply chain systems. The first one is the centralized inventory management system, in which, the information of inventory is highly exchanged among supply chain members. The other is the decentralized ...