Optimal Policies for Multiechelon Inventory Problems with Markov-Modulated Demand

  title={Optimal Policies for Multiechelon Inventory Problems with Markov-Modulated Demand},
  author={Fangruo Chen and Jing-Sheng Song},
  journal={Operations Research},
This paper considers a multistage serial inventory system with Markov-modulated demand. Random demand arises at Stage 1, Stage 1 orders from Stage 2, etc., and Stage N orders from an outside supplier with unlimited stock. The demand distribution in each period is determined by the current state of an exogenous Markov chain. Excess demand is backlogged. Linear holding costs are incurred at every stage, and linear backorder costs are incurred at Stage 1. The ordering costs are also linear. The… CONTINUE READING
Highly Influential
This paper has highly influenced 14 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS

From This Paper

Figures, tables, and topics from this paper.


Publications citing this paper.
Showing 1-10 of 63 extracted citations

Fundamentals of Matrix-Analytic Methods

Springer New York • 2014
View 6 Excerpts
Highly Influenced

Optimal policy for a two-facility inventory problem with storage constraints and two freight modes

European Journal of Operational Research • 2009
View 13 Excerpts
Highly Influenced

Myopic Inventory Policies Using Individual Customer Arrival Information

Manufacturing & Service Operations Management • 2010
View 4 Excerpts
Highly Influenced


Publications referenced by this paper.
Showing 1-10 of 21 references

The Stabilizing Effect of Inventory in Supply Chains

Operations Research • 1998
View 5 Excerpts
Highly Influenced

Lot sizes in production lines with random yield and ARMA demand

M. Soble
Working paper, Harriman School for Management & Policy, New York State University at Stony Brook. • 1997

The impact of a double moving average forecast on the bullwhip effect

Chen, Song

The impact of exponential smoothing forecasts on the bullwhip effect

F. Y. Chen, J. K. Ryan, D. Simchi-Levi.
Working paper, Northwestern University. • 1997
View 1 Excerpt

Periodic-review inventory models in random environments

S. Ozekici, M. Parlar.
Working paper, School of Business, McMaster University, Hamilton, Ontario, Canada. • 1993

Stopped myopic policies for some inventory models with uncertain demand distributions

W. Lovejoy
Management Sci. 38 688–707. • 1992
View 1 Excerpt

Similar Papers

Loading similar papers…