Inventory control in multi-echelon divergent systems with random lead times

M.C. van der Heijden, E.B. Diks, A.G. de Kok

    Research output: Working paperProfessional

    Abstract

    This paper deals with integral inventory control in multi-echelon divergent systems with stochastic lead times. The policy considered is an echelon stock, periodic review, order-up-to (R, S) policy. A computational method is derived to obtain the order-up-to level and the allocation fractions required to achieve given target fill rates. Extensive numerical experimentation shows that the accuracy of our approximate method is satisfactory. Further we show that variation in the lead times may have a significant effect on the stock levels required to achieve given target fill rates, hence this variation may not be ignored. Also, it appears that the correlation structure in the lead times may have a significant impact as well.
    Original languageEnglish
    Place of PublicationEnschede
    PublisherBETA Research Institute
    Number of pages27
    ISBN (Print)9036509440
    Publication statusPublished - 16 Jan 1996

    Publication series

    NameBETA Preprint
    No.P-1

    Keywords

    • METIS-127963

    Fingerprint Dive into the research topics of 'Inventory control in multi-echelon divergent systems with random lead times'. Together they form a unique fingerprint.

    Cite this