Algorithm Analysis of Optimal Inventory Levels in a Distributed Two-echelon Retailer System Based on Poisson Demands
This paper considers the two-echelon retailer system containing M second-echelon distribution center (DC), while each DC satisfy many first-echelon stores periodically. Our object is to minimize the total cost in the supply chain. We assume that customer demand at each store is random and follow a Poisson distribution. When a stockout occurs at the store, the excess demand is special ordered from its DC. We permit the store orders from other DC if its DC is also stockout. If all the DCs are stockout, the excess demands can order from the manufacturer. We assume that the DCs and stores perform periodic review and order strategies, and the replenishment lead times equal to zero. The unit holding cost at the store and the DC have significantly different. Our formulation is an exact calculation of inventory cost and this paper gets optimum order policies. Finally we give a example whose optimum solution can be obtained easily by using MATLAB.
Inventory control Two-echelon retailer system Poisson demands Distributed order
Liang Wang Shi-xun Li
School of Marketing & Logistics Management Nanjing University of Finance and Economics, Nanjing 210046, China
国际会议
The Third International Conference on Operations and Supply Chain Management(第三届运营与供应链管理国际会议)
武汉
英文
381-385
2009-07-28（万方平台首次上网日期，不代表论文的发表时间）