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Multi-Echelon Systems: Structures and Ordering Policies

In: Inventory Control

Author

Listed:
  • Sven Axsäter

    (Lund University)

Abstract

So far we have considered a single installation. In practice, though, it is also common to see multi-stage, or multi-echelon, inventory systems, where a number of installations are coupled to each other. For example, when distributing products over large geographical areas, many companies use an inventory system with a central warehouse close to the production facility and a number of local stocking points close to the customers in different areas. Similarly, in production, stocks of raw materials, components, and finished products are coupled to each other. To obtain efficient control of such inventory systems it is necessary to use special methods that take the connection between different stocks into account. In Chaps. 8–10 we will show when and how such methods can be used.

Suggested Citation

  • Sven Axsäter, 2015. "Multi-Echelon Systems: Structures and Ordering Policies," International Series in Operations Research & Management Science, in: Inventory Control, edition 3, chapter 8, pages 147-170, Springer.
  • Handle: RePEc:spr:isochp:978-3-319-15729-0_8
    DOI: 10.1007/978-3-319-15729-0_8
    as

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