The capacitated multi-echelon inventory system with serial structure. 2. An average cost approximation method

  • C.J. Speck
  • , J. Wal, van der

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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 have already seen that modified base-stock policies work quite well under an average cost criterion. Here a method will be presented which provides an approximation of the average costs corresponding to a modified base-stock policy in a certain class of multi-echelon serial systems. In this the moment-iteration method developed by De Kok plays a central role.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages10
Publication statusPublished - 1991

Publication series

NameMemorandum COSOR
Volume9140
ISSN (Print)0926-4493

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