An Effective Inventory Allocation Policy in Two-Echelon Distribution Network

Chi Yang Tsai; Paul Peter Tekanene; Kuei Feng Li

doi:10.4028/www.scientific.net/AMM.627.310

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HomeApplied Mechanics and MaterialsApplied Mechanics and Materials Vol. 627An Effective Inventory Allocation Policy in...

An Effective Inventory Allocation Policy in Two-Echelon Distribution Network

Abstract:

In this research, we look at the distribution in a two-echelon divergent system that considers periodic review in determining the optimal order-up-to level and rationing parameters to maintain customer service level target. We consider three policies that can provide assistance to inventory managers/planners for quick and effective in determining a rationing parameter that is flexible and effective with the dynamic nature of the demand during the rationing process. Performance comparisons between these policies are given for various problems including the application in real operational/planning setting, and least deviation from the intended objective amongst them suggests otherwise a better policy to adopt.

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Periodical:

Applied Mechanics and Materials (Volume 627)

Pages:

310-313

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.627.310

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Online since:

September 2014

Authors:

Chi Yang Tsai*, Paul Peter Tekanene, Kuei Feng Li

Keywords:

Inventory Allocation, Inventory Control, Two-Echelon System

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