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.
|Place of Publication||Eindhoven|
|Publisher||Technische Universiteit Eindhoven|
|Number of pages||10|
|Publication status||Published - 1991|