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Recursive evaluation of order‐up‐to‐S policies for two‐echelon inventory systems with compound Poisson demand

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  • Sven Axsäter
  • Wen‐Fa Zhang

Abstract

We consider an inventory system with one warehouse and N retailers. All installations apply different order‐up‐to‐S policies. Transportation times are constant and the retailers face compound Poisson demand. We provide a simple recursive procedure for the evaluation of holding and shortage costs for different control policies. © 1996 John Wiley & Sons, Inc.

Suggested Citation

  • Sven Axsäter & Wen‐Fa Zhang, 1996. "Recursive evaluation of order‐up‐to‐S policies for two‐echelon inventory systems with compound Poisson demand," Naval Research Logistics (NRL), John Wiley & Sons, vol. 43(1), pages 151-157, February.
    • Handle: RePEc:wly:navres:v:43:y:1996:i:1:p:151-157
    DOI: 10.1002/(SICI)1520-6750(199602)43:13.0.CO;2-0
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    References listed on IDEAS

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    1. R. M. Simon, 1971. "Stationary Properties of a Two-Echelon Inventory Model for Low Demand Items," Operations Research, INFORMS, vol. 19(3), pages 761-773, June.
    2. Antony Svoronos & Paul Zipkin, 1991. "Evaluation of One-for-One Replenishment Policies for Multiechelon Inventory Systems," Management Science, INFORMS, vol. 37(1), pages 68-83, January.
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    Cited by:

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    2. Guillermo Gallego & Özalp Özer & Paul Zipkin, 2007. "Bounds, Heuristics, and Approximations for Distribution Systems," Operations Research, INFORMS, vol. 55(3), pages 503-517, June.

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