This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Download to citation manager Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Moinzadeh, K. Search for Related Content

A Multi-Echelon Inventory System with Information Exchange

School of Business, University of Washington, Seattle, Washington 98195
kamran{at}u.washington.edu

In this paper, we consider a supply-chain model consisting of a single product, one supplier, and multiple retailers. Demand at the retailers is random, but stationary. Each retailer places her orders to the supplier according to the well-known (Q,R) policy. We assume that the supplier has online information about the demand, as well as inventory activities of the product at each retailer, and uses this information when making order/replenishment decisions. We first propose a replenishment policy for the supplier, which incorporates information about the inventory position of the retailers. Then, we provide an exact analysis of the operating measures of such systems. Assuming the inventory/replenishment decisions are made centrally for the system, we compare the performance of our model with those that do not use information in their decision making, namely, systems that use installation stock policies via a numerical experiment. Based on our numerical results, we identify the parameter settings under which information sharing is most beneficial.

Key Words: Supply-chain management; Inventory management; Information exchange
History: Received: May 30, 2000;

This article has been cited by other articles:

				S. Axsater and J. Marklund Optimal Position-Based Warehouse Ordering in Divergent Two-Echelon Inventory Systems Operations Research, July 1, 2008; 56(4): 976 - 991. [Abstract] [PDF]

				M. C. Gurbuz, K. Moinzadeh, and Y.-P. Zhou Coordinated Replenishment Strategies in Inventory/Distribution Systems Management Science, February 1, 2007; 53(2): 293 - 307. [Abstract] [PDF]

				J. M. Milner and P. Kouvelis Order Quantity and Timing Flexibility in Supply Chains: The Role of Demand Characteristics Management Science, June 1, 2005; 51(6): 970 - 985. [Abstract] [PDF]

				A. Jain and K. Moinzadeh A Supply Chain Model with Reverse Information Exchange MSOM, January 1, 2005; 7(4): 360 - 378. [Abstract] [PDF]

				K. Zhu and U. W. Thonemann Modeling the Benefits of Sharing Future Demand Information Operations Research, January 1, 2004; 52(1): 136 - 147. [Abstract] [PDF]