Yang, Lei; Yang, Jian; Yu, Gang; Zhang, Hanqin - In: International Journal of Production Economics 133 (2011) 2, pp. 728-735
We consider a two-stage serial inventory system whose cost structure exhibits economies of scale in both stages. In the system, stage 1 faces Poisson demand and replenishes its inventory from stage 2, and the latter stage in turn orders from an outside supplier with unlimited stock. Each...