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• W2110552924 abstract "This paper studies echelon stock (R, nQ) policies in serial production/inventory systems with stochastic demand. We provide a recursive procedure to compute the steady state echelon inventory levels of the systems, which can be used to evaluate the long-run average holding and backorder costs as well as other performance measures. The procedure is based upon an observation of a relationship between the inventory status of adjacent stages in a serial system. We also device exact formulas for replenishment frequencies and setup costs. Our results apply to both continuous-review systems with compound Poisson demand and periodic-review systems with independent, identically distributed demands. A preliminary numerical study was conducted to explore the cost effectiveness of echelon stock (R, nQ) policies. For two-stage systems with simple Poisson demand, we compared among the minimum costs of echelon stock (R, nQ) policies, a lower bound on the minimum achievable costs, and the minimum costs of installation stock (R, nQ) policies. Finally, we present a modification of an existing approximate evaluation procedure." @default.
• W2110552924 created "2016-06-24" @default.
• W2110552924 creator A5015778785 @default.
• W2110552924 creator A5068979278 @default.
• W2110552924 date "1994-10-01" @default.
• W2110552924 modified "2023-09-26" @default.
• W2110552924 title "Evaluating Echelon Stock (R, nQ) Policies in Serial Production/Inventory Systems with Stochastic Demand" @default.
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• W2110552924 doi "https://doi.org/10.1287/mnsc.40.10.1262" @default.
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