Geodesic
Approximate evaluation of continuous review $(R,Q)$ policies in two-echelon inventory systems with stochastic transportation times
Kybernetika, Tome 53 (2017) no. 3, pp. 461-479.

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This paper considers a distribution inventory system that consists of a single warehouse and several retailers. Customer demand arrives at the retailers according to a continuous-time renewal process. Material flow between echelons is driven by reorder point/order quantity inventory control policies. Our objective in this setting is to calculate the long-run inventory, backorder and customer service levels. The challenge in this system is to characterize the demand arrival process at the warehouse. We present a Markovian methodology to elucidate and approximate this process. We illustrate the use of this methodology in the distribution inventory system under stochastic transportation times with identical and non-identical retailers.
DOI : 10.14736/kyb-2017-3-0461
Classification : 60J27, 90B05
Keywords: inventory control; Markovian analysis; stochastic lead-times; distribution inventory systems 
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     title = {Approximate evaluation of continuous review $(R,Q)$ policies in two-echelon inventory systems with stochastic transportation times},
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Karaman, Abdullah S. Approximate evaluation of continuous review $(R,Q)$ policies in two-echelon inventory systems with stochastic transportation times. Kybernetika, Tome 53 (2017) no. 3, pp. 461-479. doi : 10.14736/kyb-2017-3-0461. http://geodesic.mathdoc.fr/articles/10.14736/kyb-2017-3-0461/

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