Comparison of Echelon Stock and Installation Stock Policies for Two-Level Inventory Systems

• It is previously known that echelon stock reorder point policies dominate installation stock reorder point policies for serial and assembly multi-level inventory systems. This paper presents worst-case results for the relative cost difference in case of constant demand and no backorders. Furthermore, we analyze distribution systems with stochastic demand by simulation. Depending on the structure of the system either echelon stock or installation stock policies may be advantageous.

Subject headings

TEKNIK OCH TEKNOLOGIER  -- Maskinteknik -- Produktionsteknik, arbetsvetenskap och ergonomi (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Mechanical Engineering -- Production Engineering, Human Work Science and Ergonomics (hsv//eng)

TEKNIK OCH TEKNOLOGIER  -- Samhällsbyggnadsteknik -- Transportteknik och logistik (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Civil Engineering -- Transport Systems and Logistics (hsv//eng)

Keyword

Industrial Logistics

Industriell logistik

Publication and Content Type

ref (subject category)

art (subject category)