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...

⎯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...

T his paper studies echelon stock (R, nQ) policies in serial production/inventory systems with stochastic demand. We provide a recursive procedure to compute the steady state echelon inventory levels of the systems, which can be used to evaluate the long-run average holding and backorder costs as well as other performance measures. The procedure is based upon an observation of a relationship be...

Since Clark and Scarf’s pioneering work, most advances in multi-echelon inventory systems have been based on demand processes that are time-independent. This paper revisits the serial multi-echelon inventory system of Clark and Scarf, and develops three key results. First, we provide a simple lower bound approximation to the optimal echelon inventory levels and an upper bound to the total syste...

Large multi-echelon inventory systems usually consist of hundreds of thousands of stock keep units (SKU). Calculating inventory policies for each product is a computational burden that necessitates the need for more efficient policy setting techniques that reduce computational time and increases managerial convenience. The main objective of our research is to investigate the effect of segmentat...

We consider a multi-item two-echelon inventory system in which the central warehouse operates under a (Q,R) policy, and the local warehouses implement basestock policy. An exact solution procedure is proposed to find the inventory control policy parameters that minimize the system-wide inventory holding and fixed ordering cost subject to an aggregate mean response time constraint at each facility.