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One-for-one period policy in a two-echelon inventory system with commoncycle and poisson demand rate for retailers

Haji, R ; Sharif University of Technology

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  1. Type of Document: Article
  2. DOI: 10.1109/ICCIE.2009.5223800
  3. Abstract:
  4. This paper deals with a two-echelon inventory system consisting of onesupplier and N retailers. Each retailer faces an independent Poisson demand withthe same rate and applies a new ordering policy called one-for-one- periodordering policy for its inventory control. In this ordering policy the ordersize is equal to one and the time interval between any two consecutive ordersforms a common fixed cycle. Thus, the supplier faces a deterministic demand andadopts a deterministic inventory policy. At each cycle he orders a batch of sizeN to his own supplier. Upon receipt of each batch he sends 1 unit of theproduct to each retailer with a transportation cost. In this paper, for theabove system we first derive the total cost function per unit time. Further, weobtain the conditions under which the total cost function is convex. Finally, weobtain the optimal time interval between any two consecutive orders as well asthe optimal average inventory for each retailer. © 2009 IEEE
  5. Keywords:
  6. One-for-one ordering policy ; Two-echelon ; Deterministic demand ; Inventory policies ; Optimal time ; Ordering policies ; Per unit ; Poisson demand ; Time interval ; Total cost function ; Transportation cost ; Two-echelon inventory ; Cost functions ; Industrial engineering ; Optimization ; Sales ; Inventory control
  7. Source: 2009 International Conference on Computers and Industrial Engineering, CIE 2009 ; 2009 , Pages 831-834 ; 9781424441365 (ISBN)
  8. URL: http://ieeexplore.ieee.org/document/5223800