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Notes: Installation vs. Echelon Stock Policies for Multilevel Inventory Control

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Supply Chain and Inventory Management Management and Optimization Techniques Advanced Manufacturing and Logistics Optimization

Abstract

This paper compares installation and echelon stock policies for multilevel inventory control. The major results are for serial and assembly systems. For (Q, r)-rules, echelon stock policies are, in general, superior to installation stock policies. A Kanban-policy is identified as a restricted type of installation stock (Q, r)-policy.

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1990Simple Solution Procedures for a Class of Two-Echelon Inventory Problems 1993Exact and Approximate Evaluation of Batch-Ordering Policies for Two-Level Inventory Systems

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2008On the benefits of CPFR and VMI: A comparative simulation study 1996Multi-echelon systems: A service measure perspective 2000Optimal Policies for Multi-Echelon Inventory Problems with Batch Ordering 2010A review of the causes of bullwhip effect in a supply chain 1996Materials coordination in stochastic multi-echelon systems 2018A typology and literature review on stochastic multi-echelon inventory models 2006Analyzing the effect of the inventory policy on order and inventory variability with linear control theory 2019Supply chain finance, financial constraints and corporate performance: An explorative network analysis and future research agenda

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