A Single-Unit Decomposition Approach to Multi-Echelon Inventory

Electronic Companion — “ A Single - Unit Decomposition Approach to Multi - Echelon Inventory Systems ” by Alp Muharremoglu and

A Single-Unit Decomposition Approach to Multiechelon Inventory Systems

We show the optimality of state-dependent echelon base-stock policies in uncapacitated serial inventory systems with Markov-modulated demand and Markov-modulated stochastic lead times in the absence of order crossing. Our results cover finite-time horizon problems as well as infinite-time horizon formulations, with either a discounted or an average cost criterion. We employ a novel approach, ba...

Facility Location and Inventory Balancing in a Multi-period Multi-echelon Multi-objective Supply Chain: An MOEA Approach

A comprehensive and integrated study of any supply chain (SC) environment is a vital requirement that can create various advantages for the SC owners. This consideration causes productive managing of the SC through its whole wide components from upstream suppliers to downstream retailers and customers.  On this issue, despite many valuable studies reported in the current literature, considerabl...

Integrated Multi-Echelon Supply Chain Design with Inventories under Uncertainty: MINLP Models, Computational Strategies

We address the optimal design of a multi-echelon supply chain and the associated inventory systems in the presence of uncertain customer demands. By using the guaranteed service approach to model the multi-echelon stochastic inventory system, we develop an optimization model for simultaneously optimizing the transportation, inventory and network structure of a multi-echelon supply chain. We for...

A Decomposition Approach for a Class of Capacitated Serial Systems

We study a class of two echelon, serial systems with identical ordering capacities or limits for both echelons. For the case where the lead time to the upstream echelon is one period, the optimality of state-dependent, modified echelon base-stock policies is proved using a decomposition approach. For the case where the upstream lead time is two periods, we introduce a new class of policies call...