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Recursive evaluation of order‐up‐to‐ S policies for two‐echelon inventory systems with compound Poisson demand
Author(s) -
Axsäter Sven,
Zhang WenFa
Publication year - 1996
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/(sici)1520-6750(199602)43:1<151::aid-nav10>3.0.co;2-0
Subject(s) - economic shortage , order (exchange) , poisson distribution , inventory control , economic order quantity , holding cost , computer science , constant (computer programming) , operations research , simple (philosophy) , inventory cost , mathematical optimization , operations management , mathematics , economics , business , statistics , marketing , supply chain , linguistics , philosophy , finance , epistemology , government (linguistics) , programming language
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.