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Echelon stock based continuous review (R,Q) policy for fast moving items

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  • Mitra, Subrata
  • Chatterjee, A. K.

Abstract

The superior performance of echelon stock based policies for multi-stage serial and assembly inventory systems has been well established in literature. De Bodt and Graves [1] were the first to develop an echelon stock based continuous review (R,Q) model for a two-stage serial system. In this paper, we examine their model for fast moving items from the implementation point of view, and suggest a modification that not only takes care of implementation but also leads to improvement of the model under certain conditions. The results are demonstrated with the help of a numerical example.

Suggested Citation

  • Mitra, Subrata & Chatterjee, A. K., 2004. "Echelon stock based continuous review (R,Q) policy for fast moving items," Omega, Elsevier, vol. 32(2), pages 161-166, April.
    • Handle: RePEc:eee:jomega:v:32:y:2004:i:2:p:161-166
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    References listed on IDEAS

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    1. Axsater, Sven & Zhang, Wen-Fa, 1999. "A joint replenishment policy for multi-echelon inventory control," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 243-250, March.
    2. Marc A. De Bodt & Stephen C. Graves, 1985. "Continuous-Review Policies for a Multi-Echelon Inventory Problem with Stochastic Demand," Management Science, INFORMS, vol. 31(10), pages 1286-1299, October.
    3. Ralph D. Badinelli, 1992. "A Model for Continuous-Review Pull Policies in Serial Inventory Systems," Operations Research, INFORMS, vol. 40(1), pages 142-156, February.
    4. Sven Axsäter & Kaj Rosling, 1993. "Notes: Installation vs. Echelon Stock Policies for Multilevel Inventory Control," Management Science, INFORMS, vol. 39(10), pages 1274-1280, October.
    5. Fangruo Chen & Yu-Sheng Zheng, 1994. "Evaluating Echelon Stock (R, nQ) Policies in Serial Production/Inventory Systems with Stochastic Demand," Management Science, INFORMS, vol. 40(10), pages 1262-1275, October.
    6. Fangruo Chen, 2000. "Optimal Policies for Multi-Echelon Inventory Problems with Batch Ordering," Operations Research, INFORMS, vol. 48(3), pages 376-389, June.
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    Cited by:

    1. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    2. Gumus, Alev Taskin & Guneri, Ali Fuat & Ulengin, Fusun, 2010. "A new methodology for multi-echelon inventory management in stochastic and neuro-fuzzy environments," International Journal of Production Economics, Elsevier, vol. 128(1), pages 248-260, November.
    3. Mitra, Subrata, 2009. "Analysis of a two-echelon inventory system with returns," Omega, Elsevier, vol. 37(1), pages 106-115, February.
    4. Hsien-Jen Lin, 2015. "Two-echelon stochastic inventory system with returns and partial backlogging," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(6), pages 966-975, April.
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    6. Li, Xiaoming & Sridharan, V., 2008. "Characterizing order processes of using (R,nQ) inventory policies in supply chains," Omega, Elsevier, vol. 36(6), pages 1096-1104, December.

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