Notes: Installation vs. Echelon Stock Policies for Multilevel Inventory Control

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Sven Axsäter ; Kaj Rosling (1993)
  • Journal: Management Science, volume 39, issue 10 October, pages 1,274-1,280
  • Related identifiers: doi: 10.1287/mnsc.39.10.1274
  • Subject: multiechelon inventory control, reorder point policies, serial and assembly systems

This paper compares installation and echelon stock policies for multilevel inventory control. The major results are for serial and assembly systems. For (Q, r)-rules, echelon stock policies are, in general, superior to installation stock policies. A Kanban-policy is identified as a restricted type of installation stock (Q, r)-policy.
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