Algorithm Analysis of Optimal Inventory Levels in a Distributed Two-echelon Retailer System Based on Poisson Demands

摘要

This paper considers the two-echelon retailer system containing M second-echelon distribution center (DC), while each DC satisfy many first-echelon stores periodically. Our object is to minimize the total cost in the supply chain. We assume that customer demand at each store is random and follow a Poisson distribution. When a stockout occurs at the store, the excess demand is special ordered from its DC. We permit the store orders from other DC if its DC is also stockout. If all the DCs are stockout, the excess demands can order from the manufacturer. We assume that the DCs and stores perform periodic review and order strategies, and the replenishment lead times equal to zero. The unit holding cost at the store and the DC have significantly different. Our formulation is an exact calculation of inventory cost and this paper gets optimum order policies. Finally we give a example whose optimum solution can be obtained easily by using MATLAB.