Lower bounds for multi-echelon stochastic inventory systems
Management Science
Simulation Modeling and Analysis
Simulation Modeling and Analysis
Managing a Retailer's Shelf Space, Inventory, and Transportation
Manufacturing & Service Operations Management
Effectiveness of vendor-managed inventory in the electronics industry: determinants and outcomes
Information and Management
Minimizing the Total Cost in an Integrated Vendor--Managed Inventory System
Journal of Heuristics
Computers and Operations Research - Articles presented at the conference on routing and location (CORAL)
Optimal Policies for a Multi-Echelon Inventory Problem
Management Science
Optimal Policies for a Capacitated Two-Echelon Inventory System
Operations Research
International Journal of Systems Science
Optimal Control of Serial Inventory Systems with Fixed Replenishment Intervals
Operations Research
Serial Supply Chains with Economies of Scale: Bounds and Approximations
Operations Research
Note: A Simple Heuristic for Serial Inventory Systems with Fixed Order Costs
Operations Research
Optimal Baggage-Limit Policy: Airline Passenger and Cargo Allocation
Transportation Science
Echelon-stock (R,nT) control in two-stage serial stochastic inventory systems
Operations Research Letters
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We consider a multi-product serial two echelon inventory system with stochastic demand. Inventories at the downstream location are replenished periodically using an automatic ordering system. Under vendor managed inventory strategies the upstream stage is allowed to adapt these orders in order to benefit from economies of scale. We propose three different VMI strategies, aiming to reduce the order picking cost at the upstream location and the transportation costs resulting in reduced total supply chain costs. In a detailed numerical study the VMI strategies are compared with a retailer managed inventory strategy for two different demand models suitable for slow moving products. It is shown that if inventory holding costs are low, compared to handling and transportation costs, efficiencies at the warehouse are improved and total supply chain costs are reduced.