By Ch. Schneeweiss (auth.), Prof. Dr. Sven Axsäter, Prof. Dr. Christoph Schneeweiss, Prof. Dr. Edward Silver (eds.)

This paper treats a two-echelon stock method. the better echelon is a unmarried place reffered to because the depot, which locations orders for offer of a unmarried com­ modity. The reduce echelon includes numerous issues, referred to as the outlets, that are provided via shipments from the depot, and at which random calls for for the object happen. shares are reviewed and judgements are made periodically. Orders and/or shipments could every one require a hard and fast lead time prior to achieving their respective desti­ international locations. part II offers a brief literature overview of distribution study. part III introduces the multi-echelon distribution process including the underlying as­ sumptions and provides an outline of ways this challenge will be seen as a Markovian selection method. part IV discusses the concept that of expense ameliorations in a distribution context. part V offers the test-examples including their optimum strategies and in addition provides the attribute homes of those optimum options. those homes then should be utilized in part VI to offer tailored ver­ sions of assorted heuristics which have been utilized in meeting experiments formerly and so as to be demonstrated opposed to the test-examples.

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Jonsson, H. and Silver, E. lSnsson, H. and Silver, E. qional Wareoouses in a Particular PUSH Inventory Control Systen", WP-Q785 (Faculty of Managenent, 'Ihe University of Calgary, Calgary, Canada) - also submitted to the International Journal of Production Research. E. A. Silver and R. :k>hri Wiley & Sons). SYSTEM - BASED HEURISTICS FOR MULTI-ECHELON DISTRIBUTION SYSTEMS R. LUYTEN ABSTRACT A two-echelon distribution system is investigated. We determine the form and nature of the optimal ordering policy which is determined by means of Markovian Decision Process - analysis.

We did not permit the downstream safety stock target to be set below 40 lots, since below that we have no hope of providing reasonable service (recall that Eak = 25 lots when 2 = 1). Based on the results in Table 5, we make the following observations: a) For the nested approach (produce to echelon inventory), for a fixed total safety stock (881+882), the f i l l rate is relatively insensitive with slight improvement as more safety stock is placed downstream. b) For the coupled approach (produce to intermediate inventory) the f i l l rate is very sensitive to both the amount of smoothing and the positioning of the safety stock.

To explore the impact of the safety stock levels, we contrast in Table 5 the fill rates from the two approaches for a series of safety stock choices. Due to the fact that the fill rate for the decoupled approach is very sensitive to the level of production smoothing, we simulated a set of cases with substantial smoothing (m=3, n=2) and another set with limited smoothing (m=I, n=O). We chose the safety stock levels to provide insight into the proper positioning of these stocks and to allow comparison with the onestage model (Table 2).

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