Controlling a divergent 2-echelon network with transshipments using the consistent appropriate share rationing policy

Article Abstract:

The task of controlling a two-echelon distribution network consisting of a number of retailers and a central depot employing base-stock replenishment and consistent appropriate share allocation policies was investigated. Specifically, the model was extended to allow transshipments of stock between retailers every review period. Consequently, it was compared to the case where transshipments are not allowed with respect to the control parameters for reaching the desired service levels.

Research, Rationing

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

Article Abstract:

A model was developed to assess best stock allocation policies in each scenario generated from a multi-echelon distribution system under the condition that stocks can be held at any level in the distribution network. Results of the modeling showed that under conditions of high imbalance, the Balanced Stock rationing method is appropriate and under conditions of low imbalance, the Consistent Appropriate Share rationing method is appropriate.

Production Planning & Control, Production control, Resource allocation, Production planning, Logistics

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Computational results for the control of a divergent N-echelon inventory system

Article Abstract:

A study was conducted to analyze a divergent multi-echelon inventory system. The system supports orders that arrive after a fixed lead time and incurs linear costs at each facility for holding inventory. An algorithm was then developed to obtain the control parameters of a near cost-optimal replenishment policy. Moreover, a simulation study was carried out on a three-echelon system to evaluate the algorithm.

Methods, Management, Algorithms, Inventories

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