Cost Evaluation of a Two-Echelon Inventory System with Lost Sales and Approximately Normal Demand
نویسنده
چکیده
The inventory system under consideration consists of one central warehouse and an arbitrary number of retailers controlled by a continuous review inventory policy (R;Q). Independent Poisson demands are assumed with constant transportation times for all retailers and a constant lead time for replenishing orders from an external supplier for the warehouse. Unsatis ed demands are assumed to be lost in the retailers and unsatis ed retailer orders are backordered in the warehouse. An approximate cost function is developed to nd optimal reorder points for given batch sizes in all installations and the related accuracy is assessed through simulation.
منابع مشابه
Estimation of the cost function of a two-echelon inventory system with lost sales using regression
Multi-echelon inventory systems are one of the most important and attractive areas in modelling supply chain management so that several researches and studies have been done about. In this paper, the total cost function of a two-echelon inventory system with central warehouse and many identical retailers controlled by continuous review inventory policy is estimated. We have assumed the demand i...
متن کاملImpact of Transportation System on Total Cost in a Two-Echelon Dual Channel Supply Chain
The advent of e-commerce has prompted many manufacturers to redesign their traditionalchannel structure by engaging in direct sales. In this paper, we present a dual channel inventory modelbased on queuing theory in a manufacturer-retailer supply chain, consisting of a traditional retailchannel and a direct channel which stocks are kept in both upper and lower echelon. The systemreceives stocha...
متن کامل(1, T) policy for a Two-echelon Inventory System with Perishable-on-the-Shelf Items
This paper deals with an i * Corresponding author Email address: nventory system with one central warehouse and a number of identical retailers. We consider perishable-on-the-shelf items; that is, all items have a fixed shelf life and start to age on their arrival at the retailers. Each retailer faces Poisson demand and employs (1, T) inventory policy. Although demand not met at a retai...
متن کاملA Two-Echelon Inventory Model with Lost Sales
Almost all multi-echelon inventory models assume that demand not satis ed immediately can be backordered. In some situations this assumption is not realistic. For example, it may be more representative to model stockouts as lost sales when the retailers are in a competitive market and customers can easily turn to another rm when purchasing the good. Assuming lost sales at the retailers, we cons...
متن کاملThe Cost Function for a Two-warehouse and Three-Echelon Inventory System
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...
متن کامل