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Computing demand properties at the wholesale warehouse level

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  • Carl R. Schultz

Abstract

Computational formulas are given for the mean, variance, and autocorrelation function of the demand process at an upper‐echelon facility (warehouse). The demand process at the warehouse is induced by the aggregated inventory replenishment processes of N independently operated lower‐echelon facilities (stores) in parallel. Each store, we assume, employs an (s,S) inventory replenishment policy with complete backlogging to satisfy its own random, independently and identically distributed demand. The formulas result from an analysis of the stochastic replenishment process at a single store. Examples of the properties of the demand process at the upper‐echelon facility are presented for several lower‐echelon environments.

Suggested Citation

  • Carl R. Schultz, 1983. "Computing demand properties at the wholesale warehouse level," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 30(1), pages 37-48, March.
    • Handle: RePEc:wly:navlog:v:30:y:1983:i:1:p:37-48
    DOI: 10.1002/nav.3800300104
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    Cited by:

    1. Wang, Xun & Disney, Stephen M. & Ponte, Borja, 2023. "On the stationary stochastic response of an order-constrained inventory system," European Journal of Operational Research, Elsevier, vol. 304(2), pages 543-557.

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