Optimizing Reorder Intervals for Two-Echelon Distribution Systems with Stochastic Demand

  title={Optimizing Reorder Intervals for Two-Echelon Distribution Systems with Stochastic Demand},
  author={Kevin Huei-Min Shang and Zhijie Tao and Sean X. Zhou},
  journal={Oper. Res.},
We consider a periodic-review inventory system in which N non-identical retailers replenish from a warehouse, which further replenishes from an outside vendor with ample supply. Each facility faces Poisson demand and replenishes according to a base-stock policy in a fixed time interval. Fixed costs are incurred for placing an order. The warehouse fills the retailers’ orders in the same sequence as the occurrence of the demand at the retailers. The objective is to minimize the average system… 

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