Exact Analysis of Continuous Review (R,Q) Policies in Two-Echelon Inventory Systems with Compound Poisson Demand

  • Authors:
  • Sven Axsäter

  • Affiliations:
  • -

  • Venue:
  • Operations Research
  • Year:
  • 2000

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Abstract

We consider a two-level inventory system with one central warehouse andN retailers. All installations apply different continuous review installation stock ( R,Q) policies. The retailers face independent compound Poisson demand processes. Transportation times are constant. We present a method for exact evaluation of control policies that provides the complete probability distributions of the retailer inventory levels.