An Analysis of a Single Item Inventory System with Returns: The Multi-Echelon Case.

Abstract

We consider the inventory control of a single item in a two echelon system in which a warehouse (the upper echelon) supports N(N > or = 1) retailers (the lower echelon). Customers return units in a repairable state as well as demand units in a serviceable state at the retailer level only. The return and demand processes are assumed to be mutually independent. The stationary return rate is assumed to be less than the stationary demand rate at each location so that occasional outside procurements are necessary. The objectives of this paper are to develop a cost model of this system given that each location follows a continuous review procurement policy, and to incorporate the single item, single location solution method into an iterative algorithm which determines the policy parameter values at each location.

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Document Details

Document Type
Technical Report
Publication Date
Jul 01, 1979
Accession Number
ADA076913

Entities

People

  • John A. Muckstadt
  • Michael H. Isaac

Organizations

  • Cornell University College of Engineering

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Algorithms
  • Cost Models
  • Costs
  • Engineering
  • Industrial Engineering
  • Inventory
  • Inventory Control
  • Lead Time
  • Military Research
  • Normal Distribution
  • Operations Research
  • Probability
  • Procurement
  • Random Variables
  • Schools
  • Stationary
  • Universities

Readers

  • Approximation Theory.
  • Logistics and Supply Chain Management.