Uniform distribution of inventory positions in two-echelon periodic review systems with batch-ordering policies and interdependent demands |
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| Authors: | Frank Y Chen Youyi Feng David Simchi-Levi |
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| Institution: | a Department of System Engineering and Engineering Management, Ho Sin Hang Engineering Building, Chinese University of Hong Kong, Shatin, N.T., Hong Kong;b Enron Corporation, 1400 Smith Street, Houston, TX 77002-7361, USA;c Department of Civil and Environmental Engineering, MIT, Boston, 77 Massachusetts Ave., Cambridge, MA 02139, USA |
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| Abstract: | We consider a two-level inventory system in which there are one supplier and multiple retailers. The retailers face stochastic, interdependent customer demands. Each location employs a periodic-review (R,nQ), or lot-size reorder point, inventory policy. We show that each location's inventory positions are stationary and the stationary distribution is uniform and independent of any other's. |
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| Keywords: | Inventory/production Stochastic multi-echelon inventory systems with dependent demands |
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