The capacitated multi-echelon inventory system with serial structure. 1. The 'push ahead'-effect

J. Wal, van der, C.J. Speck

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Abstract

This paper considers a multi-echelon, periodic review inventory model with discrete demand. We assume finite capacities on various production/order sizes and backordering of excess demand. We show that under the average cost criterion the optimal order strategy may be characterized by a so-called 'push ahead'-effect. Further we shall find that a modified base-stock policy approximates the optimal policy quite well.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages10
Publication statusPublished - 1991

Publication series

NameMemorandum COSOR
Volume9139
ISSN (Print)0926-4493

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