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

✍ Scribed by Jing-Sheng Song; Paul H. Zipkin

• Publisher: John Wiley and Sons
• Year: 1996
• Tongue: English
• Weight: 716 KB
• Volume: 43
• Category: Article
• ISSN: 0894-069X
• DOI: 10.1002/(sici)1520-6750(199604)43:3<381::aid-nav5>3.0.co;2-5

✦ Synopsis

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 continuoustime Markov chain. This underlying process may represent, for example, general economic conditions, the number of active users in the system, etcetera. 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. 0