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Exact Analysis of Continuous Review ( R,Q ) Policies in Two-Echelon Inventory Systems with Compound Poisson Demand

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  • Sven Axsäter

    (Department of Industrial Engineering, Lund University, P.O. Box 118, S-221 00 Lund, Sweden)

Abstract

We consider a two-level inventory system with one central warehouse and N retailers. All installations apply different continuous review installation stock ( R,Q ) policies. The retailers face independent compound Poisson demand processes. Transportation times are constant. We present a method for exact evaluation of control policies that provides the complete probability distributions of the retailer inventory levels.

Suggested Citation

  • Sven Axsäter, 2000. "Exact Analysis of Continuous Review ( R,Q ) Policies in Two-Echelon Inventory Systems with Compound Poisson Demand," Operations Research, INFORMS, vol. 48(5), pages 686-696, October.
    • Handle: RePEc:inm:oropre:v:48:y:2000:i:5:p:686-696
    DOI: 10.1287/opre.48.5.686.12403
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    References listed on IDEAS

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    1. Antony Svoronos & Paul Zipkin, 1988. "Estimating the Performance of Multi-Level Inventory Systems," Operations Research, INFORMS, vol. 36(1), pages 57-72, February.
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    Cited by:

    1. Yao Zhao, 2008. "Evaluation and Optimization of Installation Base-Stock Policies in Supply Chains with Compound Poisson Demand," Operations Research, INFORMS, vol. 56(2), pages 437-452, April.
    2. Agrawal, Narendra & Smith, Stephen A., 2019. "Optimal inventory management using retail prepacks," European Journal of Operational Research, Elsevier, vol. 274(2), pages 531-544.
    3. Xiaobo, Zhao & Xu, Deju & Zhang, Hanqin & He, Qi-Ming, 2007. "Modeling and analysis of a supply-assembly-store chain," European Journal of Operational Research, Elsevier, vol. 176(1), pages 275-294, January.
    4. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.

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