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| Author: | Cheung, L. Hausman, W. |
| Title: | An exact performance evaluation for the supplier in a two- echelon inventory system |
| Journal: | Operations Research
2000 : JUL-AUG, VOL. 48:4, p. 646-653 |
| Index terms: | PERFORMANCE APPRAISAL SUPPLIERS INVENTORIES |
| Language: | eng |
| Abstract: | This paper studies a continuous review two-echelon inventory system with a supplier serving multiple retailers. Each location uses a decentralized policy based on installation stocks. Each retailer may set a unique reorder quantity as a multiple of a basic packaging size Q. The supplier, in turn, adopts a similar batch replenishment policy. The objective is to derive the exact steady-state performance for the supplier. The authors show that the inventory position at the supplier can be easily characterised by a uniform distribution. |
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