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Evaluation of base‐stock policies in multiechelon inventory systems with state‐dependent demands part I: State‐independent policies

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  • Jing‐Sheng Song
  • Paul H. Zipkin

Abstract

This article analyzes a model of a multiechelon inventory system. The exogenous demands form Markov‐modulated Poisson processes. That is, the demand rates are functions of an underlying Markov chain. Each location follows a base‐stock policy which is independent of the state of the underlying Markov chain. We employ the exogenous transit mechanism introduced by Zipkin [7] and Svoronos and Zipkin [6]. The transit times between locations have phase‐type distributions. An exact procedure to compute steady‐state performance measures is presented. © 1992 John Wiley & Sons, Inc.

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  • Jing‐Sheng Song & Paul H. Zipkin, 1992. "Evaluation of base‐stock policies in multiechelon inventory systems with state‐dependent demands part I: State‐independent policies," Naval Research Logistics (NRL), John Wiley & Sons, vol. 39(5), pages 715-728, August.
    • Handle: RePEc:wly:navres:v:39:y:1992:i:5:p:715-728
    DOI: 10.1002/1520-6750(199208)39:53.0.CO;2-4
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    References listed on IDEAS

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    1. Antony Svoronos & Paul Zipkin, 1991. "Evaluation of One-for-One Replenishment Policies for Multiechelon Inventory Systems," Management Science, INFORMS, vol. 37(1), pages 68-83, January.
    2. David Y. Burman & Donald R. Smith, 1986. "An Asymptotic Analysis of a Queueing System with Markov-Modulated Arrivals," Operations Research, INFORMS, vol. 34(1), pages 105-119, February.
    3. Paul Zipkin, 1986. "Stochastic leadtimes in continuous‐time inventory models," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 33(4), pages 763-774, November.
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    1. Li Chen & Jing-Sheng Song & Yue Zhang, 2017. "Serial Inventory Systems with Markov-Modulated Demand: Derivative Bounds, Asymptotic Analysis, and Insights," Operations Research, INFORMS, vol. 65(5), pages 1231-1249, October.

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