This paper presents a two-echelon non-repairable spare parts inventory system that consists of one warehouse and m identical retailers and implements the reorder point, order quantity (R, Q) inventory policy. We formulate the policy decision problem in order to minimize the total annual inventory investment subject to average annual ordering frequency and expected number of backorder constraint...

C often face nonstationary demand due to product life cycles and seasonality, and nonstationary demand complicates supply chain managers’ inventory decisions. This paper proposes a simple heuristic for determining stocking levels in a serial inventory system. Unlike the exact optimization algorithm, the heuristic generates a near-optimal solution by solving a series of independent single-stage ...

Joint managed inventory is an advanced supply chain inventory management tool, which will effectively tackle the complicated problem between the inventory cost of supply chain and service level. The research on inventory model and its’ control under JMI environment is a hot issue at present. In this paper, the authors deeply discuss the question of the inventory time costs about the multi-produ...

Problem definition: We consider dual sourcing in a distribution network for spare parts consisting of one central warehouse and multiple local warehouses. Each keeps types repairable to maintain several capital goods. The repair shop at the has two options each part: regular option an expedited option. Irrespective option, part uses certain resource its repair. In design these inventory systems...

This paper studies a two-echelon supply chain with stochastic and discrete consumer demand, batch order quantities, periodic inventory review, and deterministic transportation times. Reorder point policies manage inventories at every location. Average inventory, backorders and fill rates are evaluated exactly for each location. Safety stock is evaluated exactly at the lower echelon and a good a...

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...

⎯We consider a two-echelon supply chain with two retailers and one supplier. The retailers are supplied by the supplier who makes all the decisions and bears all the inventory risk. Throughout this paper, we consider two different inventory systems: a reserved inventory system and a pooled inventory system. With the reserved inventory system, the supplier keeps separate inventories for each ret...

In this paper, we establish the convexity of important cost functions in a general class of multi-echelon inventory models. In particular, we first study an assembly system with a single finished product managed using an echelon order-up-to policy. We show that the shortage penalty cost over any horizon is jointly convex with respect to the base-stock levels and capacity levels. Our second resu...

In multi-echelon inventory systems the performance of a given node is affected by events that occur at many other nodes and in many other time periods. For example, a supply disruption upstream will have an effect on downstream, customer-facing nodes several periods later as the disruption "cascades" through the system. There is very little research on stock-out prediction in single-echelon sys...