An Effective Inventory Allocation Policy in Two-Echelon Distribution Network

摘要

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.