Optimal centralized ordering policies in multi-echelon inventory systems with correlated demands
Article Abstract:
A study was conducted to analyze a depot-warehouse system in which demand occurs at the retail or warehouse level. The suggested model stipulates that item demands are allowed to be correlated in time and across warehouses. High correlations between successive demands that were monthly were found, as well as high correlations between demands for an item at various locations. Results suggest that an explicit expression can be derived for the optimal safety stock as a function of the level of correlation through time. These findings are tempered by two assumptions: the equal coefficient of variation assumption and the allocation assumption. Numerical evaluations also are presented to demonstrate the result of the various magnitudes of correlation.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1990
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A continuous review model for an inventory system with two supply modes
Article Abstract:
An approximate model of an inventory system is developed. The system under study has two resupply options with one option having a longer lead time than the other. Two different reorder levels and different lot sizes are used because of the apparent complexity of the optimal policy. Procedures for defining policy parameters, expected on hand inventory, and expected back orders are developed.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1988
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Operating characteristics of the (S - 1, S) inventory system with partial backorders and constant resupply times
Article Abstract:
Expressions describing the expected total cost rate and the steady state operating characteristics of an (S - 1, S) inventory system with constant resupply times and Poisson demand are developed. There is also an exploration of the expected total cost rate behavior when it is a function of the relevant parameters.
Publication Name: Management Science
Subject: Business, general
ISSN: 0025-1909
Year: 1989
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