TY - BOOK
T1 - Inventory control in multi-echelon divergent systems with random lead times
AU - Heijden, van der, M.C.
AU - Diks, E.B.
AU - Kok, de, A.G.
PY - 1996
Y1 - 1996
N2 - This paper deals with integral inventory control in multi-echelon divergent systems with stochastic lead times. The policy considered is an echelon stock, periodic review, order-up-to (R, S) policy. A computational method is derived to obtain the order-up-to level and the allocation fractions required to achieve given target fill rates. Extensive numerical experimentation shows that the accuracy of our approximate method is satisfactory. Further we show that variation in the lead times may have a significant effect on the stock levels required to achieve given target fIll rates, hence this variation may not be ignored. Also, it appears that the correlation structure in the lead times may have a significant impact as well.
Key words: Inventory, multi-echelon, divergent, allocation, random lead times.
AB - This paper deals with integral inventory control in multi-echelon divergent systems with stochastic lead times. The policy considered is an echelon stock, periodic review, order-up-to (R, S) policy. A computational method is derived to obtain the order-up-to level and the allocation fractions required to achieve given target fill rates. Extensive numerical experimentation shows that the accuracy of our approximate method is satisfactory. Further we show that variation in the lead times may have a significant effect on the stock levels required to achieve given target fIll rates, hence this variation may not be ignored. Also, it appears that the correlation structure in the lead times may have a significant impact as well.
Key words: Inventory, multi-echelon, divergent, allocation, random lead times.
M3 - Report
T3 - Memorandum COSOR
BT - Inventory control in multi-echelon divergent systems with random lead times
PB - Technische Universiteit Eindhoven
CY - Eindhoven
ER -