Multi-echelon inventory system includes many sub depots which often compose a supply chain. There is little literature talk about the correlated demand which is the fundamental relationship between these echelons. According to the idea of maximum part-period gain (MPG) in the operation management, the system optimal inventory strategy can be obtained by trading off the order cost and the storage cost. Then the optimal model and the genetic algorithm are given. The simulation result showed that it is a good way to get the satisfied order policy.
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