Summary
In this paper, we analyze a two-echelon inventory system with one warehouse, one retailer and a priority customer class with direct supply from the warehouse. The customer demands are arbitrarily distributed. At both stockpoints, the inventory control is according to a reorder-point policy with periodic review and fixed replenishment order sizes. For such a system, we present a discrete-time Markov chain model to describe the inventory positions. With this model, the service levels for both customer classes can be computed. A simple priorization rule such that the priority customer class will be served first as well as a critical-level policy can be considered.
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References
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© 2009 Springer-Verlag Berlin Heidelberg
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Fischer, L., Manitz, M. (2009). An Exact Discrete-Time Model of a Two-Echelon Inventory System with Two Customer Classes. In: Fleischmann, B., Borgwardt, KH., Klein, R., Tuma, A. (eds) Operations Research Proceedings 2008., vol 2008. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-00142-0_30
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DOI: https://doi.org/10.1007/978-3-642-00142-0_30
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Print ISBN: 978-3-642-00141-3
Online ISBN: 978-3-642-00142-0
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