AN INVENTORY MODEL FOR OPTIMIZATION OF A TWO-ECHELON PERIODIC-REVIEW SYSTEM

  • Denilson Ricardo de Lucena Nunes Pontifícia Universidade Católica do Rio de Janeiro
  • Antônio Fernando de Castro Vieira Pontifícia Universidade Católica do Rio de Janeiro
Keywords: inventory model, warehouse, service level, retail

Abstract

In this article a single-item inventory model for a two-echelon system made up of a warehouse and N retailers is proposed. The warehouse adopts an interval between reviews that is an integer multiple of the interval used in the retailers. The retailers apply reviews at equal, synchronized intervals. The algorithm developed for the model determines the order-up-to level at each stockpoint so that the target service-level is met at the retailer at minimal cost to the system. In order to determine how effective the proposed model was, a simulation was performed to observe the service level for an item with normal demand in a three-retailer system using order-up-to levels supplied by the proposed algorithm. 

Author Biographies

Denilson Ricardo de Lucena Nunes, Pontifícia Universidade Católica do Rio de Janeiro

Doutorando do Departamento de Engenharia Industrial

Antônio Fernando de Castro Vieira, Pontifícia Universidade Católica do Rio de Janeiro

Professor do Departamento de Engenharia Industrial

Published
2016-03-20
How to Cite
Nunes, D., & Vieira, A. (2016). AN INVENTORY MODEL FOR OPTIMIZATION OF A TWO-ECHELON PERIODIC-REVIEW SYSTEM. Brazilian Journal of Operations & Production Management, 13(1), 2-15. https://doi.org/https://doi.org/10.14488/BJOPM.2016.v13.n1.a1
Section
Articles