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Optimal Policies for a Multi-Echelon Inventory Problem
Abstract
In the last several years there have been a number of papers discussing optimal policies for the inventory problem. Almost without exception these papers are devoted to the determination of optimal purchasing quantities at a single installation faced with some pattern of demand. It has been customary to make the assumption that when the installation in question requests a shipment of stock, this shipment will be delivered in a fixed or perhaps random length of time, but at any rate with a time lag which is independent of the size of the order placed. There are, however, a number of situations met in practice in which this assumption is not a tenable one. An important example arises when there are several installations, say 1, 2, …, N, with installation 1 receiving stock from 2, with 2 receiving stock from 3, etc. In this example, if an order is placed by installation 1 for stock from installation 2, the length of time for delivery of this stock is determined not only by the natural lead time between these two sites, but also by the availability of stock at the second installation. In this paper we shall consider the problem of determining optimal purchasing quantities in a multi-installation model of this type.
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Cited by
Supply chain modeling: past, present and future
Min, H., & Zhou, G. (2002) · Computers & Industrial Engineering · doi:10.1016/s0360-8352(02)00066-9 · Cited by 940
Modeling Supply Chain Dynamics: A multiagent Approach
Swaminathan, J. M., Smith, S. F., & Sadeh, N. M. (1998) · Decision Sciences · doi:10.1111/j.1540-5915.1998.tb01356.x · Cited by 878
OR/MS models for supply chain disruptions: a review
Snyder, L. V., Atan, Z., Peng, P., Rong, Y., Schmitt, A. J., & Sinsoysal, B. (2016) · IIE Transactions · doi:10.1080/0740817x.2015.1067735 · Cited by 854
Antecedents of supply chain visibility in retail supply chains: A resource‐based theory perspective
Barratt, M., & Oke, A. (2007) · Journal of Operations Management · doi:10.1016/j.jom.2007.01.003 · Cited by 702
Inventory and its Relationship with Profitability: Evidence for an International Sample of Countries
Rumyantsev, S., & Netessine, S. (2013) · doi:10.2139/ssrn.2319862 · Cited by 18
Metadata
- Authors
- Clark, A. J., & Scarf, H.
- Venue
- Management Science
- Published
- 1960-07
- Volume
- 6
- Issue
- 4
- Pages
- 475-490
- ISSN
- 0025-1909 (ISSN-L)
- 1526-5501
- OpenAlex
- W4252999557
- Cited by
- 1,252
- References
- 0
- FWCI
- 2.56
- Type
- journal article
- Language
- en
- Open access
- closed
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