Accession Number:

ADA026463

Title:

A Deterministic Two-Echelon Inventory Model with an Arbitrary Number of Lower Echelon Activities

Descriptive Note:

Master's thesis

Corporate Author:

NAVAL POSTGRADUATE SCHOOL MONTEREY CA

Personal Author(s):

Report Date:

1976-03-01

Pagination or Media Count:

62.0

Abstract:

The Economic Order Quantity EOQ model is extended to a deterministic, tow-echelon model with an arbitrary number of activities on the lower echelon. Two variations of the model are developed using minimization of time-average cost as an objective. A no-stockouts-allowed case is examined, and a method for finding the optimal solution is developed. A backorders-allowed model is derived and partially solved here in general. A full solution is presented for a restricted range of lower echelon parameter values. Examples of the no-stockouts-allowed model are given and solved. The solutions from this model are compared to those derived assuming the activities operate wholly independently. Significant potential reduction in variable time-average cost through the use of this model is demonstrated.

Subject Categories:

  • Administration and Management
  • Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE