Chen, Fangruo; Zheng, Yu-Sheng - In: Management Science 40 (1994) 10, pp. 1262-1275
This paper studies echelon stock (R, nQ) policies in serial production/inventory systems with stochastic demand. We provide a recursive procedure to compute the steady state echelon inventory levels of the systems, which can be used to evaluate the long-run average holding and backorder costs as...