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

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

    Research output: Book/ReportReportAcademic

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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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