Evaluation of base-stock policies in multiechelon inventory systems with state-dependent demands. Part II: State-dependent depot policies

Published

Journal Article (Review)

We consider a two-echelon inventory system where the exogenous demands occur only at the retailer locations, and the demand rates are functions of an underlying continuous-time Markov chain. This underlying process may represent, for example, general economic conditions, the number of active users in the system, et cetera. Each retailer location follows a base-stock policy that is independent of the process. However, the warehouse (central depot) follows a state-dependent base-stock policy. We develop a procedure to compute the exact steady-state customer-delay distribution for both the warehouse and the retailer locations. © 1996 John Wiley & Sons, Inc.

Full Text

Duke Authors

Cited Authors

  • Song, JS; Zipkin, PH

Published Date

  • January 1, 1996

Published In

Volume / Issue

  • 43 / 3

Start / End Page

  • 381 - 396

International Standard Serial Number (ISSN)

  • 0894-069X

Digital Object Identifier (DOI)

  • 10.1002/(SICI)1520-6750(199604)43:3<381::AID-NAV5>3.0.CO;2-5

Citation Source

  • Scopus