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A Multi-echelon Inventory Control Model with Random Leadtime and Stochastic Demand

In: Liss 2014

Author

Listed:
  • Liang Zhao

    (Beijing Jiaotong University)

  • Hongjie Lan

    (Beijing Jiaotong University
    Lab of Logistics Management and Technology)

Abstract

Multi-echelon inventory control is aimed at coordinate the inventory levels in the supply chain nodes, which can help reach the optimal operating strategy of the whole supply chain. On the basis of previous studies, this paper considers a three-echelon inventory control model with random leadtime and stochastic demand, which can be more practical. This paper discuss a three-echelon distribution inventory system with a central warehouse, wholesalers, A retailers (large and medium retailers) and B retailers (small retailers), which are all approximated by different types of distribution. The system is controlled by continuous review installation stock (R, Q) policies. The model is illustrated by numerical examples and sensitivity analysis is conducted.

Suggested Citation

  • Liang Zhao & Hongjie Lan, 2015. "A Multi-echelon Inventory Control Model with Random Leadtime and Stochastic Demand," Springer Books, in: Zhenji Zhang & Zuojun Max Shen & Juliang Zhang & Runtong Zhang (ed.), Liss 2014, edition 127, pages 1331-1336, Springer.
    • Handle: RePEc:spr:sprchp:978-3-662-43871-8_193
    DOI: 10.1007/978-3-662-43871-8_193
    as

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