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Evaluation of base‐stock policies in multiechelon inventory systems with compound‐poisson demands
Author(s) -
Zipkin Paul
Publication year - 1991
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 - 10.1002/1520-6750(199106)38:3<397::aid-nav3220380309>3.0.co;2-3
Subject(s) - base (topology) , poisson distribution , stock (firearms) , computer science , econometrics , mathematics , business , statistics , engineering , mechanical engineering , mathematical analysis
This article analyzes a model of a multiechelon inventory system: The exogenous demands form independent compound‐Poisson processes. Each location follows a base‐stock policy. The transit times between locations may be stochastic. Instead of assuming independent transit times, we follow an approach closer to the standard treatment of single‐location models. We develop procedures to compute steady‐state performance measures, including average backorders and average inventories. The model and the analysis generalize those of Svoronos and Zipkin, who treat the case of pure Poisson demands.