An Analysis of a Single Item Inventory System with Returns: The Multi-Echelon Case.
CORNELL UNIV ITHACA N Y SCHOOL OF OPERATIONS RESEARCH AND INDUSTRIAL ENGINEERING
Pagination or Media Count:
We consider the inventory control of a single item in a two echelon system in which a warehouse the upper echelon supports NN 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.
- Administration and Management
- Economics and Cost Analysis